Fincantieri and TUI Forge Partnership for Innovative New Cruise Ships in the UK Market

Just a few days after hinting at plans for new ships in its UK cruise line, marella Cruises, TUI Group from Germany has struck a deal with Fincantieri to build two brand-new cruise vessels.This marks an exciting first for marella and builds on their existing partnership with the Italian shipbuilder, which has previously worked on TUI’s German venture, Mein schiff.

The agreement includes a Memorandum of Agreement that secures construction slots at Fincantieri, with expected delivery dates set for 2030 and 2032. The total value of this order is reported to be over €2 billion (around $2.2 billion). However, the deal hinges on securing financing and finalizing binding contracts.

while specifics about the size of these new ships remain under wraps, TUI assures that they will be tailored specifically for the UK market while maintaining the premium image associated with Marella.

TUI recently shared insights into its growth strategy with investors, emphasizing that the UK cruise sector is booming—projected to grow by 9% annually until 2030. In conjunction with this announcement about new ships, TUI AG indicated potential earnings before interest and taxes (EBIT) coudl range between €130 million and €150 million ($140 million to $162 million) per ship each year along with an extraordinary return on Invested Capital estimated at 11-12%.

The roots of Marella trace back to the ’70s when Thomson Holidays chartered older vessels for cruises. The operation was revitalized in the ’90s as competition surged within Britain’s growing cruise industry. By October 2017, it had rebranded as Marella Cruises focusing solely on British customers while positioning itself firmly in the premium market segment.

marella currently boasts five ships ranging from 70,000 to 77,000 gross tons each—accommodating around 2,000 guests per vessel—all built between ’95 and ’97.Notably among them are two former Royal Caribbean ships: Marella Discovery and Marella Discovery 2, acquired in recent years alongside others like Marella Explorer, which came from Celebrity Cruises’ fleet.

TUI’s leadership has acknowledged challenges posed by their aging fleet compared to competitors like Carnival’s P&O Cruises—which continues expanding its offerings—and Saga Cruises’ recent additions of modern vessels. Even fred Olsen upgraded its lineup during pandemic times by acquiring second-hand ships from Holland America Line.

Acknowledging these hurdles due to older fleets’ limitations in size and amenities compared to rivals’, Marella is actively pursuing options for “re-fleeting” through discussions aimed at securing newbuild slots—a challenging task given that European shipyards are fully booked until at least 2030 due to complex supply chains involved in constructing such specialized vessels.

TUI remains focused on enhancing profitability while recognizing robust opportunities within the UK cruise landscape; they also mentioned ongoing exploration of partnership avenues similar to past collaborations like those seen between Mein Schiff and Royal Caribbean or their previous sale involving Hapag-Lloyd Cruises.

Fincantieri celebrates adding another project under its belt as it works towards completing another vessel for TUI—the Mein Schiff Flow—set for delivery in just a few years’ time (2026). Their shipyards are bustling not only with orders from major players like Carnival Corporation but also catering luxury segments including Four Seasons’ small luxury yachts among others.