Cruise operations of TUI AG, the German travel company that is listed in London, benefitted from a good performance of is Hapag-Lloyd Cruises unit, but was variance in the performance of its three cruise brands in terms of operating result (EBITA).
Turnover in the group's cruise business rose by just 0.4% to €193.0 million, but underlying EBITA rose by 25.3% to €47.0 million, mainly due to a strong performance of the luxury and expedition market unit Hapag-Lloyd Cruises.
Its average daily rate rose by 10.9% to €591 and outpaced both the UK focused Marella Cruises’ 6.2% rise, to €137, and the flat figure of TUI Cruises, of €149.
TUI Cruises, in which TUI AG has a 50% stake, had 8.3% more passenger days than in the first quarter of its previous financial year, while Hapag-Lloyd Cruises experienced a deduction of 5.1% in its corresponding figure.
“In Cruises, the strong demand continues for TUI Cruises, Marella Cruises and Hapag-Lloyd Cruises, as we look forward to our ship launches in 2019 and beyond. Looking ahead, load factor and yield performance are in line with our expectations, and re ect the additional capacity coming to market,” TUI AG said in a statement.
TUI AG, the German tour operator that is listed in London, said that its core markets continue to grow despite headwinds in some parts of its business.
“Despite the challenges experienced by Markets & Airlines, demand for leisure travel continues to grow in our core markets,” TUI said.
TUI AG owns 50% of the German cruise operator TUI Cruises and is full owner of the expedition and luxury operator Hapag-Lloyd Kreuzfahrten and UK based Marella Cruises. It did not suggest that there was problems with these businesses
“We have positioned TUI to benefit from this through the successful transformation as an integrated provider of Holiday Experiences (hotels, cruises and activities & excursions), based on its strong strategic and financial position,” TUI said.
TUI is planning to enter into new markets generating €1 billion of revenue from one million customers by 2022, driving more demand for our own hotels. Holiday Experiences delivered 70% of earnings in FY18 and we expect continued strong performance from these parts of our business.
“Having delivered this transformation, we expect the ongoing digitalisation and platforming of our business to drive future earnings, positioning TUI to continue to benefit from the strong mid- to long-term growth in consumer demand for leisure travel,” the company stated.
TUI AG, which operates three cruise brands as parts of its business, has issued a profit warning for the financial year to 30 September, citing a host of woes from last year’s hot weather in Europe, shift in consumer demand and a weak British pound as sources of concern.
“TUI AG now expects FY19 underlying EBITA rebased at constant currency to be broadly stable compared with the record performance in FY18 of EUR 1,177m. Consequently, we are not reiterating our guidance of at least 10% CAGR in underlying EBITA at constant currency for the three years to FY20,” said the company, whose headquarters are in Hannover in Germany in a statement.
The company said 34% of its Markets & Airlines Summer 2019 programme has been booked to date. “Bookings are broadly in line with prior year, however, margins are not, TUI said.
This is driven by a continuation of the sector headwinds already discussed at our FY18 results presentation in December 2018, in particular:
negative impact from the extraordinary hot weather in 2018, resulting in later bookings and weaker Markets & Airlines margins;
shift in demand from the Western to Eastern Mediterranean, which has created overcapacities in certain destinations such as the Canaries, resulting in lower margins for Markets & Airlines; and
continued weakness of the Pound Sterling, making it difficult to improve margins on holidays sold to UK customers.
Previously, it was anticipated that these headwinds would impact primarily H1 (Winter), however we are seeing from current bookings an additional impact on H2 (Summer), and have updated our guidance accordingly.
TUI said the management is already taking specific measures to address Markets & Airlines headwinds, including harmonisation under one leadership to drive cost savings and efficiencies; reducing distribution costs by shifting to more direct, more online, more mobile; and increasing upselling of activities & excursions to drive revenue and margin benefits.
“We also expect that the continued sector headwinds may trigger market consolidation, and that TUI could be a beneficiary of this,” the company said.
TUI AG owns 50% of the German cruise operator TUI Cruises and is full owner of the expedition and luxury operator Hapag-Lloyd Kreuzfahrten and UK based Marella Cruises
In an event rich with inspiration and tradition, Holland America Line held a dedication ceremony for Nieuw Statendam Saturday, Feb. 2, 2019, at Port Everglades in Fort Lauderdale, Florida. Oprah Winfrey – philanthropist, film star, TV icon, founder and editorial director of O, The Oprah Magazine – officially named the ship in a ceremony on board in the ship’s World Stage.
During the daytime celebration, Winfrey was joined by Orlando Ashford, president of Holland America Line; Stein Kruse, Holland America Group and Carnival UK chief executive officer; and Arnold Donald, president and CEO of Carnival Corporation.
“We are deeply honored to have Oprah Winfrey serve as the godmother of our newest ship in a celebration of our shared belief that travel has the power to open minds, build connections and inspire shared humanity across cultures and people,” said Orlando Ashford, Holland America Line’s president. “Oprah’s magnetic energy and astounding ability to inspire others is admired around the world, and today was the perfect culmination of a memorable few days together on Nieuw Statendam and our ongoing partnership with O, The Oprah Magazine.”
Nieuw Statendam’s dedication ceremony followed the three-day Girls’ Getaway cruise to the Caribbean that celebrated the power of female relationships. Gayle King, editor-at-large of O, The Oprah Magazine and Winfrey’s best friend, joined her on the cruise, along with several other senior editors from the magazine.
During the ceremony, Ashford highlighted the connection between Nieuw Statendam, the legacy of the ship’s name and the stories of life-changing travel experiences for the officers and crew, travel professionals and guests, saying: “Nieuw Statendam represents our highest aspirations for connection and understanding in our world. She is a vessel for exploration and adventure across countries, languages, cultures and peoples, and — we hope — a source of joy for our guests for many years to come.”
Winfrey reflected on the Girls’ Getaway cruise that had just concluded, saying “It’s been an incredible experience to see people from across the world come together with one mind and celebrate themselves, honor themselves and honor each other. Everybody gathered, made friends and connected to people they didn’t know because they felt like they had met themselves on some level. I have never seen anything like it.” She then officially dedicated the ship as its godmother with the traditional statement, “I name this ship Nieuw Statendam. May God bless her and all who sail on her.” The ceremony concluded when Winfrey triggered the release of the traditional bottle of Champagne that broke against the ship’s bow.
Following the ceremony, a Gala Dinner was held on board. During the evening celebration, guests were invited to participate in a maritime tradition of pouring Champagne over the ship’s bell as a blessing. This ceremony was a recreation of the bell ceremony on Holland America Line’s s.s. Statendam IV on January 23, 1957, when a then-18-year-old Dutch Crown Princess Beatrix poured Champagne over the bell to officially dedicate that new ship as it sailed in the North Sea. Nieuw Statendam is the sixth ship in the company’s history to bear the name.