The travel company Saga highlights an exceptional year, showcasing significant growth and profitability in its cruise and travel sectors.
- Saga’s ocean cruise division anticipates a 30% revenue increase, surpassing £40 million in profits per ship for the year.
- The river cruise segment rebounds with revenue expected at £44 million and passenger numbers rising significantly.
- Tour operations see substantial recovery with revenue growth projected up to 45% and passenger increases of 20%.
- Saga’s strategic adjustments aim to optimise cruise operations, enhance market standing, and secure robust bookings for future seasons.
Saga, renowned for serving the over-50s demographic, has reported an “outstanding year” for its cruise and travel businesses, suggesting robust progress towards profitability. In a recent update, the company highlighted its efforts to optimise its ocean cruise operations, potentially through partnership deals, as part of a capital-light business model.
The ocean cruise segment of Saga is forecasting an impressive 30% increase in revenue year-on-year, with profits expected to exceed £40 million per ship annually. This growth is bolstered by a higher booked load factor for 2024-25, which stands at 66%, a marked improvement from the 62% of the previous year.
Saga’s river cruise sector is set to return to an underlying profit, with projected revenues of approximately £44 million and passenger numbers reaching 17,000, improving significantly from the prior year’s 12,000 passengers and £29 million revenue.
On the tour operating front, Saga is on track to achieve pre-pandemic profit levels, with anticipated annual revenue growth of up to 45%. The passenger count is expected to rise by 20% to 58,000. These figures reflect the successful integration of the tour operating arm with the river cruise business.
According to Mike Hazell, Saga’s CEO, the travel division is also making notable strides, aligning well with recent market dynamics. By January 28, 2024, Saga had secured bookings amounting to £115 million for the upcoming year, which represents a 12% increase from the previous year, with passenger numbers also climbing to 35,000, a 2% increase.
Saga’s strategic focus and successful execution have resulted in a strong return to profitability, underscoring its resilience and market appeal.
