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/
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