TUI AG, the world's largest tour operating company, says its cruise business is enjoying a rise in sales on the back of growing capacity and improved performance of its niche brand.

"Winter 2014/15 is closing out as expected, with our Mainstream programme almost fully sold and higher average selling prices in most source markets. We are pleased with Summer 2015 trading, with continued strong demand for our unique holidays and a significant increase in online bookings. Hotels & Resorts are performing well and Cruise sales continue to grow, with the launch of Mein Schiff 4 this June and improved fleet performance by Hapag-Lloyd Kreuzfahrten," Peter Long and Friedrich Joussens, joint chief executives, said in a statement.

Mein Schiff 4 is the second of four 99,300 gross ton cruise ships TUI Cruises, a joint venture between TUI and Royal Caribbean Cruises Ltd. (RCCL), the world's second largest cruise shipping group, has on order at Meyer Turku Shipyard in Finland.

Hapag-Lloyd Kreuzfahrten is fully owned by TUI and it focuses on the luxury and expedition segments of the cruise market. TUI has its headquarters in Hannover in GErmanhy and its shares are traded on the Frankfurt and London stock exchanges.