Vard Finalizes Two More Cruise Ship Orders

Travel and tourism group TUI has ordered two new cruise ships for its Hapag-Lloyd cruise business, to meet rising demand for expedition trips to areas such as the polar regions or the Amazon.

The cruise expansion comes as TUI aims to generate more of its earnings from its own hotels and cruises. It currently gets around 30 percent of its core earnings from its own hotels and cruises but wants to increase this to 50 percent over the next three years.

The two new ships, which can accommodate up to 240 people, are being built by in Norway by Vard Holdings, part of Italian shipyard Fincantieri and are due to be launched in spring and autumn 2019.

The new additions will bring Hapag-Lloyd's fleet of owned ships to five, while it also has a further ship on charter due to be launched in 2018.

TUI did not disclose financial details of the deal.