TUI: Cruise division booming – but there is criticism

TUI shares are performing well at the start of the week. In addition to positive analyst comments, TUI is also seeing strong growth in its cruise business: Despite initial difficulties, the group aims to benefit from the cruise boom, as TUI Cruises CEO Wybcke Meier reported to Handelsblatt .

Barclays analyst Andrew Lobbenberg confirmed his price target of €11.00 at the end of June and continues to recommend the stock as an "overweight" buy. This would give the stock nearly 50 percent upside potential. Lobbenberg continues to focus on low-cost airlines such as TUI, EasyJet, and Ryanair, while underweighting network airlines such as Lufthansa.

At the same time, TUI Cruises is experiencing strong growth. The new flagship, "Mein Schiff Relax," alone increased capacity by 22 percent this year. Cruises CEO Wybcke Meier announced this to Handelsblatt . Another new ship, "Mein Schiff Flow," will follow in 2026, increasing the fleet's overall capacity by 40 percent. "We see great potential for further increasing demand," emphasizes Clas Eckholt, Vice President Commercial of TUI Cruises.

However, the launch of the "Mein Schiff Relax" didn't go smoothly: As the Handelsblatt reported, guests complained about overcrowded restaurants, long wait times, and a pool deck that was too small. Meier admitted that there were teething issues on the first few voyages, but these had been resolved as the crew and guests gained experience. "We've since received no negative feedback," Meier said.

TUI aims to benefit from the ongoing cruise boom – according to Clia, 37.7 million cruise guests are expected worldwide in 2025. TUI Cruises sees the cruise business as an important source of revenue, with the operating margin reaching 44 percent in 2024.