In a spring trading update, issued on Tuesday (20 June), Euan Sutherland, Saga Group chief executive, said the group was "continuing to build momentum" across its cruise and travel operations.
"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," said Sutherland.
He added the group, off the back of the June trading update covering the period from 1 February to 19 June 2023, expected to post a full-year underlying profit "well ahead of the prior year".
It comes after Saga stepped away from the UK travel trade last year, opting only to operate through select trade partners. Agents can still access the group’s touring product, though, through its Titan Travel brand.
Booked ocean cruise load factor for 2023/24 stood at 79% as of 18 June, seven percentage points ahead of the same point last year, with per day spend at £338, 6% ahead of the same point in 2022.
Full-year load factor is expected to tip "at least 80%", with the line stating its two ocean ships – Spirit of Discovery and Spirit of Adventure – are on track to each deliver £40 million earnings, largely in the second-half of the year due to seasonality.
Saga claims the launch of its 2024/25 ocean cruising season was its strongest on record, with the programme as of 18 June already booked at a load factor of 34% on the basis of per day spend of £342.
Booked river cruise load factor, meanwhile, stood at 74% as of 18 June for Saga’s 2023/24 season at per day spend of £293. This equates to revenue of £39 million and is 37% of the same point last year.
Back on dry land, booked touring and land holiday revenue for 2023/24 as of 18 June stood at £150 million, 37% of the same point last year "largely driven by an uplift in touring". "Travel is on track to return to an underlying profit before tax for the second half and full year, in line with previous guidance," said Saga.
During its financial year to date, Saga has repaid a further £15.8 million ocean cruise ship debt after taking delivery during Covid of its new-build ships, Spirit of Discovery and Spirit of Adventure.
