The over-50s specialist will work with fewer agents as travel emerges from the Covid crisis, despite hailing the trade for its support just a matter of months ago. In a statement, a Saga spokesperson said the move was part of a strategy "to build a more agile travel business". All existing trade bookings will be honoured.
"As Saga customers return to travel throughout 2022, we have made changes to our business to ensure we are delivering the holidays our customers want," they said.
"As part of this, we are moving to work with a smaller group of trade partners to enable us to more closely collaborate and build stronger relationships. This is all part of our strategy to build a more agile travel business, delivering the quality holidays that our customers want."
The spokesperson confirmed the decision would affect agents selling both Saga’s cruise and holidays product, with a slightly greater skew towards those selling Saga holidays.
The firm, though, declined to comment on the overall extent to which it was scaling back its trade operation, which areas of the travel trade it would prioritise in future, and what effect the decision would have on its trade team.
Saga currently lists a team of six on its trade portal, headed up by Iain Powell.
Late last year, Saga cancelled a number of scheduled 2022 itineraries across both its touring and holiday programmes after an internal review, which is understood to have affected around 3,000 bookings – including trade bookings.
Saga Travel started selling its cruise and touring product through the trade in 2014. Previously, cruise was sold through the trade via Titan Travel.
Reacting to the announcement, Deben Travel tweeted: "Really disappointed with this news. We have always been supportive of Saga, introducing new clients to them and making many bookings. We have now lost these and future customers to a direct-sell operator. Such a shame."
Last October, Saga announced a brand overhaul it said was designed to "change perception of age". It pledged to work with the trade to roll out the Experience is Everything campaign, and created assets for agents to use to promote the Saga Cruises brand.
At the time, Stuart Beamish, Saga Group chief customer officer, praised the travel trade for its strong relationships with clients, which he said would help Saga change its brand message. "The travel trade has been fantastic for Saga," he said. "First and foremost because of the quality of their relationships with their customers.
"In some respects, that feedback through travel agents, through our account teams and back to us, is part of the insight that has spurred us on to do this [refresh the brand]."
Cruise expansion
Saga christened its second new-build cruise ship, Spirit of Adventure, in Portsmouth last July. Sister vessel, Spirit of Discovery, debuted for the brand in July 2019.
It also operates a river cruise programme; its first purpose-built river ship, Spirit of the Rhine, sailed its maiden voyage last September. A second river ship, Spirit of the Danube, is due to debut this year.
Additionally, the over-50s specialist offers a substantial escorted touring programme. Saga is currently licensed to carry just over 42,000 Atol-protected passengers a year.
In its interim results for the six months to 31 July 2021, Saga said it was “on track” for £40 million pre-tax profit per ship “over time” and revealed its ships had a 70% load factor as of 11 September last year.
In the six-month period, Saga’s cruise sector by itself lost £35.4 million, compared to £15.4 million in the previous half year.
In total, Saga’s travel businesses lost £51.2 million, up 50% year-on-year, due to “a longer suspension period, financing costs of Sprit of Adventure, restricted capacity on earlier cruises and incremental costs of restart”.
