TUI Group is currently looking into capital growth options for TUI's subsidiary Hapag-Lloyd Cruises, including an eventual joint venture with an international partner. TUI (Europe's largest tourism group) announced on Wednesday, January 22, that it was assessing the potential for further growth at Hapag-Lloyd “through an expansion of its luxury segment in the German and adjacent markets”.
The premium cruise brand Hapag-Lloyd targets predominantly German-speaking travellers but TUI pointed out that “demand for luxury cruises also exists in non-German-speaking markets, and, as previously communicated, TUI is evaluating its strategic expansion options”.
A company statement said TUI believed "various expansion and financial models are feasible to support Hapag-Lloyd’s expansion. In particular, TUI is in discussions about joint venture structures such as TUI Cruises.” TUI Cruises, which is focused on the mainstream market, is a joint venture between RCCL-Royal Caribbean Cruises Ltd and TUI Travel.
TUI Group commented it had launched its transformation to a digital company but at the same time would continue its successful integrated model while “moving ahead with the expansion of the hotels and cruise business at a lower level of capital intensity”.