Saga Group has turned its cruise and tour operations into profitable ventures over the past year, driven by strong customer demand.
- The company’s revenue rose by 13% to £732.7 million, significantly reducing pre-tax losses by 53% year-on-year.
- Ocean cruise arm achieved a notable £35.5 million pre-tax profit, while river cruises and tour operations also returned to profitability.
- Forward bookings for 2024-25 are set to continue this growth, with significant customer interest in ocean and river cruises.
- Saga is accelerating its partnership strategy, exploring opportunities to enhance growth and shareholder value.
Saga Group has successfully navigated its cruise and tour operations back to profitability in the past year, bolstered by robust customer demand within the over-50s market. The company’s total annual underlying revenue saw a 13% increase, reaching £732.7 million, which played a crucial role in reducing its pre-tax loss from £272.7 million to £129 million, marking a 53% decrease year-on-year.
The ocean cruise sector was a standout performer, recording a pre-tax profit of £35.5 million, a stark contrast to the previous year’s £700,000 loss. This success was underpinned by a 28% rise in revenue to £215.9 million. Similarly, the river cruising segment turned a £3 million pre-tax profit, compared to a £5.1 million loss in the prior year, thanks to a 52% revenue increase to £43.8 million.
Saga’s tour operations also marked a recovery, achieving a pre-tax profit of £1.5 million, reversing a £4.1 million loss from the previous year. Revenue in this segment surged by 44% to £156.3 million, facilitated by a 22% increase in passenger numbers to 57,800.
Forward bookings for Saga’s operations in the fiscal year 2024-25 suggest continued momentum. Ocean cruise bookings have secured a load factor of 78%, while river cruises are also ahead with a 72% load factor compared to the previous year. The travel segment is projecting a booked revenue of £140.7 million from 45,300 passengers, depicting a year-on-year growth of 12% and 4%, respectively.
Saga is actively pursuing a ‘capital-light’ model by accelerating partnerships in ocean cruise and insurance sectors to bolster growth. Chief Executive Mike Hazell emphasised this strategy, highlighting opportunities that partnerships present in ocean cruise and insurance businesses.
Chairman Sir Roger Die Hahn remarked that current ocean cruise operations are nearing capacity, and potential partnerships are being explored to sustain growth. Saga’s diligent management and strategic foresight place the company on a promising path as it strengthens its market position.
Saga’s strategic turnaround highlights its resilience and adaptability, setting a promising course for future growth.
