Saga says cruise business steaming ahead
The business which specialises in serving the over-50s said its ocean cruise business has managed to fill around eight in 10 spots for this season.
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Your support makes all the difference.Saga, the business which specialises in serving the over-50s, has said its ocean cruise business has managed to fill around eight in 10 spots for this season and it expects to hike profits this year.
Saga told shareholders on Tuesday that its load factor is already 79%, seven percentage points ahead of last year, and only one behind the company’s target for the year.
It means that each ship is expected to earn Saga around £40 million in earnings before interest, tax, depreciation and amortisation (ebitda).
But much of this will come towards the second half of the year as people prefer to travel in the later parts of summer.
In insurance, market conditions, particularly in motor, continue to weigh on our group result
The business also reported its strongest launch at this point of next season’s cruises. It has managed to fill around 34% of places for the 2024 to 2025 season, bosses told shareholders.
“Four months into the financial year, we have continued to build on the momentum in our cruise and travel operations, while making further progress in our growth agenda through the development of our newer businesses,” said chief executive Euan Sutherland.
“Year-end underlying profit is expected to be well ahead of the prior year.”
He added: “We have taken strong bookings for our ocean cruises with a load factor that is ahead of the same point in the prior year, and our river cruise and travel businesses are on track to return to profitability in line with previous guidance.”
The business said that it was planning to launch Saga Spaces in July, an online service which will allow subscribers to access social interactions, GP appointments, health advice and classes.
The business said that it is still looking to sell its insurance underwriting business in a bid to slash its debt.
Mr Sutherland said: “In insurance, market conditions, particularly in motor, continue to weigh on our group result.
“We have secured a valuable partnership with Bupa that will not only improve our current private medical offering but also open up exciting new opportunities, and we plan to launch our new pet insurance later in the year.
“Meanwhile, we are also continuing with the sale process of our insurance underwriting business.
“We are developing a series of new products in Saga Money and preparing for the July launch of Saga Spaces, our new subscription-based online platform that will offer customers social interaction and a series of online services.”