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Hapag-Lloyd’s MS Europa / TUI

Tui is “very bullish” on cruises in Europe

The chief executive says he is open to further ships and thinks Europe can overtake the US in cruise penetration.

Tui Group’s chief executive is not ruling out adding further ships to its cruise brands, saying he believes Europe could overtake the US in terms of cruise penetration.

Fritz Joussen was speaking after the release of the group’s half-year results, in which the group revealed it would be adding a third Hapag-Lloyd vessel, TTG reports.

Hapag-Lloyd Cruises will soon launch the planning and negotiation process for a further Hanseatic-class ship, planned for delivery in 2021.

More ships
Asked about further ships for the group, Joussen replied: “I wouldn’t exclude it. It’s something we are looking at but it needs to be rational and within the guidance of our investment promise to the financial market.”

He sees the cruise market “only growing” in the next five to seven years, he added.

“The US market is still ahead in terms of penetration. […] In Europe in general people are older and fitter and people are wealthier and have more time,” he said.

“If cruise penetration today in Europe is lower than in the US, we assume over time that Europe is going to catch up with the US or overtake it in terms of penetration.”
Marella and Tui Cruises have both seen a capacity increase of at least 20% over the last year, and the rates are increasing, Joussen said.

“That says something about the demand and the future. We are very bullish on this segment.”

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