TUI AG Underlying EBIT loss improved to ?70m versus prior quarter (Q2 2021 loss: ?103m) as a result.
Cruises
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue1 1.1 2.0 - 45.0 2.7 483.6 - 99.4
Underlying EBIT - 81.3 - 224.3 + 63.8 - 234.6 - 197.3 - 18.9
Underlying EBIT at constant currency - 80.4 - 224.3 + 64.2 - 235.6 - 197.3 - 19.4
Occupancy (in %, variance in % points)
TUI Cruises 41 - n. a. 37 97 - 60
Marella Cruises 48 - n. a. 48 96 - 48
Hapag-Lloyd Cruises2 42 - n. a. 33 77 - 44
Passenger days ('000)
TUI Cruises 256 - n. a. 610 2,854 - 78.6
Marella Cruises 6 - n. a. 6 1,366 - 99.6
Hapag-Lloyd Cruises 23 - n. a. 43 383 - 88.8
Average daily rates3 (in ?)
TUI Cruises 125 - n. a. 113 141 - 20.2
Marella Cruises (in £) 127 - n. a. 127 146 - 13.0
Hapag-Lloyd Cruises2 443 - n. a. 407 612 - 33.4
1 No revenue is carried for TUI Cruises and Hapag-Lloyd Cruises as the joint venture is consolidated at equity
2 Hapag-Lloyd Cruises prior year KPIs restated to align to TUI Cruises methodology
3 Per day and passenger During Q3 2021, TUI Cruises increased its operations from May, from three ships to four, offering itineraries to the Canaries, Spanish coast, Greek Islands and Baltic Sea. Average daily rate of the operated fleet was ?125 reflecting shorter average duration of itineraries offered. Occupancy of the operated fleet was 41%.
Our UK cruise brand Marella, resumed sailing with Explorer at the end of June, with a domestic programme from Southampton, its first since the government-imposed suspension of cruise operations in March 2020. Average daily rate and occupancy of the operated fleet was £127 and 48% respectively, with occupancy capped at 50% as required by UK government restrictions.
For Hapag-Lloyd Cruises, in addition to Europa 2 which was already in operation, Expedition Class Hanseatic nature and inspiration resumed sailings with short cruises from Hamburg and to the Baltic Sea. Average daily rate of the operated fleet was ?443 reflecting the pricing of shorter and more local itineraries. Occupancy of the operated fleet was 42%.
Underlying EBIT loss declined to ?81m versus prior quarter (Q2 2021 loss: ?55m) reflecting the ramp up of operations in preparing our fleet and returning our crew onboard ahead of our peak summer period. Prior year includes 100% result of Hapag-Lloyd Cruises (Q3 2020 loss: ?17.8m) which is now consolidated at equity within the TUI Cruises Joint Venture.
TUI Musement (formerly Destination Experiences) ? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Total revenue 25.7 -5.4 n. a. 51.2 418.3 - 87.8 Revenue 19.0 - 6.2 n. a. 37.5 294.2 - 87.3 Underlying EBIT - 34.7 - 37.6 + 7.7 - 96.7 - 66.5 - 45.4 Underlying EBIT at constant currency - 35.0 - 37.6 + 6.9 - 97.9 - 66.5 - 47.2
212k excursions and activities sold in the quarter, reflecting the increased departures and reopening of destinations. Online sales participation was 39%.
Underlying EBIT loss of ?35m included ramp up costs as we prepared staff to return to destinations ahead of peak summer period.
Markets & Airlines
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue 546.8 69.8 + 683.4 1,145.5 5,541.7 - 79.3
Underlying EBIT - 482.7 - 492.7 + 2.0 - 1,332.8 - 1,277.0 - 4.4
Underlying EBIT at constant currency - 470.5 - 492.7 + 4.5 - 1,326.0 - 1,277.0 - 3.8
Direct distribution mix1,3 73 n. a. n. a. 74 n. a. n. a.
(in %, variance in % points)
Online mix2,3 52 n. a. n. a. 54 n. a. n. a.
(in %, variance in % points)
Customers ('000)3 876 60 n. a. 1,560 6,325 - 75.3
1 Share of sales via own channels (retail and online)
2 Share of online sales
3 Like-for-like basis excluding disposed entities Berge & Meer and Boomerang We restarted operations in April firstly from our German source market. In Q3 we took 876k customers on their summer holidays, mostly from our central and western markets. Greece, the Balearics and the Canaries were the most popular destinations during the quarter. Travel regulations remains a key limitation on our operations, with customer demand highly correlated to newsflow and positive travel policy advice.
Supported by the acceleration of our digital strategy, online distribution has increased 4% pts to 52% (vs Q3 2019: 48%) overall across our markets.
Underlying loss increased to ?483m versus prior quarter (Q2 2021 loss: ?404m) reflecting the ramp up costs of operations as we prepared our aircraft fleet, retrained crew, and increased the number of retail staff in stores ahead of peak summer period. The quarterly result also includes ?33m benefit from hedging ineffectiveness on both FX and fuel contracts.
Northern Region
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue 56.0 15.3 + 266.0 215.1 2,202.2 - 90.2
Underlying EBIT - 289.8 - 177.2 - 63.5 - 708.1 - 592.4 - 19.5
Underlying EBIT at constant currency - 278.7 - 177.2 - 57.3 - 704.0 - 592.4 - 18.8
Direct distribution mix1 95 n. a. n. a. 93 n. a. n. a.
(in %, variance in % points)
Online mix2 77 n. a. n. a. 76 n. a. n. a.
(in %, variance in % points)
Customers ('000) 50 - n. a. 169 2,238 - 92.4
1 Share of sales via own channels (retail and online)
2 Share of online sales 50k customers departed in the third quarter, reflecting the limited green list destinations made available by the UK government. Direct distribution remained high at 95% with online distribution increasing by 11% pts to 77% (vs. Q3 2019: 66%).
Underlying loss increased to ?290m versus prior quarter (Q2 2021 loss: ?194m) as a result of ramp up costs in preparation for peak Q4 and related costs from stop/start nature of permitted destinations under UK travel restrictions.
Central Region
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue 370.3 34.1 + 985.9 707.7 2,244.0 - 68.5
Underlying EBIT - 105.4 - 219.2 + 51.9 - 377.4 - 398.7 + 5.3
Underlying EBIT at constant currency - 105.1 - 219.2 + 52.1 - 377.1 - 398.7 + 5.4
Direct distribution mix1,3 63 n. a. n. a. 63 n. a. n. a.
(in %, variance in % points)
Online mix2,3 39 n. a. n. a. 38 n. a. n. a.
(in %, variance in % points)
Customers3 ('000) 510 57 + 794.7 842 2,253 - 62.6
1 Share of sales via own channels (retail and online)
2 Share of online sales
3 Like-for-like basis excluding disposed entities Berge & Meer and Boomerang 510k customers departed in the third quarter, reflecting the more consistent travel advice given by our Central region governments, enabling customers to depart with more certainty to destinations such as Majorca, Canaries and Turkey.
Online distribution for the region has increased by 17% pts to 39% (vs. Q3 2019: 22%) with direct distribution increasing 13% pts to 63% (vs. Q3 2019: 50%).
Underlying loss improved to ?105m versus prior quarter (Q2 2021 loss: 126m) reflecting the contribution from more substantial departures and operations.
Western Region
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue 120.5 20.4 + 490.7 222.6 1,095.5 - 79.7
Underlying EBIT - 87.6 - 96.3 + 9.0 - 247.3 - 285.9 + 13.5
Underlying EBIT at constant currency - 86.7 - 96.3 + 10.0 - 245.0 - 285.9 + 14.3
Direct distribution mix1 85 n. a. n. a. 86 n. a. n. a.
(in %, variance in % points)
Online mix2 69 n. a. n. a. 70 n. a. n. a.
(in %, variance in % points)
Customers ('000) 317 3 n. a. 549 1,833 - 70.0
1 Share of sales via own channels (retail and online)
2 Share of online sales 317k customers departed in the period reflecting the reopening of destinations part way through the quarter for the region. Again, supported by our digital acceleration, online distribution improved by 13% pts to 69% (vs. Q3 2019: 56%) with direct distribution increasing 10% pts to 85% (vs. Q3 2019: 75%).
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