25 June 2024 , 07:37
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Saga, the over-50s travel and insurance specialist, has reported an "exceptional" surge in bookings for its cruise business this year, despite facing a tough market impacting its insurance arm.
The London-listed company boasted a robust beginning to the year with ocean and river cruise bookings surpassing last year's figures, showing a 14% jump in revenue as more holidaymakers locked in their voyages. Saga offers all-inclusive cruises, group tours, and holidays to global destinations. Booked load factors, which indicate the percentage of available rooms filled, stood at 83% for ocean cruises and 78% for river cruises.
Yet, the firm acknowledged ongoing struggles within the insurance sector, where inflationary pressures are ramping up business costs. Saga provides a range of insurance products for the over-50s, including car, home, travel, and health policies.
The broader insurance industry has been grappling with inflation-related increases in claim costs, squeezing companies that need to compensate policyholders. Despite these challenges, Saga has implemented measures to fortify its operations and is witnessing signs of improvement, particularly in its car insurance division, which had previously dampened profits.
Mike Hazell, the chief executive of Saga, underlined: "Our ocean cruise business has traded exceptionally well and, in insurance, we have continued to take actions within a market which remains challenging. Looking ahead, we are focused on driving sustainable business growth in a capital-light way, while growing our customer base and deepening our connections with those customers."
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