Saga, a prominent player in the over-50s travel and insurance market, reports significant advancements in its cruise and tour operations.
- The company anticipates a 30% increase in ocean cruise revenue, forecasting annual profits exceeding £40 million per ship.
- The thriving business recorded a notable booked load factor of 66% for 2024-25, surpassing last year’s figures.
- River cruise operations are expected to return to profitability, with projected revenues of £44 million from 17,000 passengers.
- Tour operations show promising recovery with a forecasted 45% rise in annual revenue.
Saga, a key entity in the over-50s travel and insurance sector, has reported an extraordinary year for its cruise and tour operating businesses. The firm, in its half-year trading update, expressed optimism about its ocean cruise arm, foreseeing a 30% surge in revenue year-on-year. Expectations are set for annual profits per ship to exceed £40 million, driven by high demand and operational efficiency.
Confirming its strategic direction, the company revealed that the booked load factor for 2024-25 has significantly increased to 66% compared to 62% in the previous year. This improvement underscores the ongoing momentum in Saga’s ocean cruise operations, nearing optimal capacity. The exploration of potential partnerships aligns with their capital-light business model, which aims to bolster growth, reduce debt, and enhance shareholder returns.
In a remarkable turnaround, the river cruise division is poised to return to underlying profitability. The division expects to generate approximately £44 million in revenue with 17,000 passengers, marking a substantial improvement from the previous year’s £29 million and 12,000 passengers.
Saga’s tour operations are also on an encouraging recovery trajectory, targeting a 45% growth in annual revenue. Passenger numbers are expected to rise by 20% to 58,000. The integration of the tour operating arm with river cruises further consolidates operations, reflecting a strategic realignment to maximise profit.
The travel business continues its upward trajectory, aligning with the overall sectoral dynamics experienced over the past year. As of the end of January, booked revenue for 2024-25 was £115 million, representing a 12% increase from the same time last year, with passenger counts rising by 2% to 35,000.
Group chief executive, Mike Hazell, shared his insights on the progress, stating, “Our cruise and travel businesses have had an outstanding year, having taken around 120,000 passengers on holiday.” He highlighted the brand’s appeal and effective offerings as contributing factors to these businesses returning to profitability.
Overall, Saga’s proactive strategies and strong market demand have positioned its cruise and travel businesses for continued growth and profitability.
