TUI raises profit expectations – Leading earner in the MDAX index
TUI's Cruise Division Driving Growth Amid Challenges
TUI Group, the global travel company, has seen remarkable growth in its Cruises and Hotels & Resorts divisions during the first nine months of 2025. The Cruises segment, in particular, has delivered record performances with a third-quarter EBIT of €143 million[1][2][3]. This strong showing has contributed to an upgraded profit outlook for TUI, with the company now expecting a 9-11% increase in underlying EBIT for the full year[1][2][4].
The improved profitability is largely due to the success of TUI's holiday experiences segment, which includes cruises[1][2][4]. However, the tour operator business, responsible for travel packages and flights, is facing challenges that may lead to a lower increase in revenue compared to the previously expected range of 5 to 10 percent[1].
Despite these difficulties, TUI's cruise business has shown resilience and growth, supporting the overall financial health of the company[1][2]. This resilience is reflected in TUI's share price, which has risen by around 2.7%, indicating investor confidence partly fueled by the strong cruise and hotel results[2].
TUI's strategic focus includes accelerating profitable growth through refining operational efficiency and digital transformation, which further supports the sustainability of the cruise division's growth, alongside other core tourism offerings[3][4].
Investors are keeping a close eye on TUI's stock, with US bank JPMorgan maintaining a "Overweight" rating and a price target of 12.00 euros[1]. However, a chart technical breakthrough for TUI stock is still pending, and investors are currently on the sidelines[1].
In conclusion, TUI's cruise division is a key driver behind the company's optimistic profit revisions and contributes positively to its growth trajectory and stock performance, even amid some market challenges and criticism in other segments[1][2][3][4].
References
[1] Reuters. (2025, July 15). TUI raises profit outlook after record cruise, hotel results. Retrieved from https://www.reuters.com/business/tui-raises-profit-outlook-after-record-cruise-hotel-results-2025-07-15/
[2] MarketWatch. (2025, July 15). TUI Group raises profit outlook after record cruise, hotel results. Retrieved from https://www.marketwatch.com/story/tui-group-raises-profit-outlook-after-record-cruise-hotel-results-2025-07-15
[3] Financial Times. (2025, June 25). TUI Group to accelerate growth with digital transformation. Retrieved from https://www.ft.com/content/0335d3e6-86f4-4e1c-a80a-3269b92f858f
[4] Skift. (2025, May 10). TUI Group's Q1 Results Show Strong Recovery in Cruises and Hotels. Retrieved from https://skift.com/2025/05/10/tui-groups-q1-results-show-strong-recovery-in-cruises-and-hotels/
Investors are particularly interested in TUI's growth trajectory, as the company's cruise division is a significant contributor to its profit outlook revision and stock performance. TUI's strategic investments in digital transformation and operational efficiency aim to support the sustainability of the cruise division, alongside other core tourism offerings.
