Travel and insurance group, Saga has reported continued strong customer demand for its travel business, driving revenue growth during the first half of this year.
Travel had an excellent start to the financial year, with underlying profit before tax 33% ahead of the same period last year at £41.6 mill, and underlying revenue growth of 9% at £246.7 mill for 1H25.
Having combined the leadership and operations of the cruise and holidays businesses, Saga claimed it was achieving both improved efficiency and a stronger, more consistent delivery across the full range of holidays.
In its Ocean Cruise operation, the company reported underlying profit before tax of £34.5 mill, a 23% increase compared with 1H24.
This reflected the ongoing strong demand generated for the unique cruise offering, driving both repeat bookings and new customers.
First half underlying revenue increased 8% to £130.9 mill, as a result of achieving a load factor of 94% and per diem of £391 in 1H25, with an increase of 4% and 8%, respectively, compared to the same time last year.
River Cruise reported underlying profit before tax of £3.9 mill, a 34% increase, compared with 1H24. This business sector is continuing to be more closely aligned to the premium service provided by the Ocean Cruise business, Saga said. This is resulting in improved financial results, higher customer ratings and stronger forward bookings.
Underlying revenue was marginally lower by 1%, due to reduced capacity, with one less river cruise ship in service for part of 1H25. This was offset by a load factor of 93% and per diem of £364 in the period, an increase of both 7%, respectively, compared with 1H24.
In July, Saga launched its latest purpose-built river cruise ship, ‘Spirit of the Moselle’.
Mike Hazell, Group CEO (pictured), said: “I am delighted to present an excellent set of results and outline the continued progress we are making on our strategic priorities. Our focus on our strategic objectives has begun to deliver excellent trading results, particularly in our Travel business.
“Underlying revenue,grew by 7% in the first half of the year, to £320.5 mill, supporting an 8% increase in trading EBITDA, which rose to £67.5 mill.
“Following the successful disposal of our Insurance Underwriting business in July, underlying profit before tax was £23.5 mill for the first half of the year, compared with £24.8 mill for same period last year.
“Our profit before tax has improved from a loss of £116.9 mill in the first half of last year, to £3.7 mill profit this year, reflecting both our positive trading performance and the end of insurance broking goodwill impairments that have impacted previous years’ profits.
“Reducing our debt remains a key priority and we have seen appreciable reduction in the first half of the year. At 31st July, 2025, net debt was £515.1 mill, £77.7 mill lower than at 31st January, 2025.
“Earlier this year, we combined the management teams and operations of our Cruise and Holidays businesses, in order to be able to operate a more efficient and effective operating model and deliver a constantly high level of service to all our customers.
“Led by our hugely experienced Saga travel leadership team, the early results have been excellent. Cruise demand for our unique boutique ocean cruises is stronger than ever and we have seen an excellent start to the year, continuing the momentum generated in previous years.
“Our focus is always on enhancing the quality, value and service we offer our customers. This year we have extended the range of our chauffeur car service so that all our customers will now be able to benefit from this hassle-free experience and receive exceptional service from the moment they leave their front door.
“Our cruises are tailored for our customers; our reservation systems, the design of our smaller luxury ships, on board hospitality, and our itineraries. As a result, our customer satisfaction levels are excellent. Our transaction net promoter score (tNPS) increased to 85, from 81, during the first half of the year, and repeat customers made up 65% of our bookings.
“The result of this focus can be seen in our load factors and per diems, both growing strongly. Bookings for the full year, at 21st September, 2025 reflect a 92% load factor and a per diem of £395, increases of 2% and 10%, respectively, compared with the same period last year.
“River Cruise also had a positive start to the year and continues to go from strength to strength. In July, we launched ‘Spirit of the Moselle’.
This new addition to the fleet provides our customers with more choice and we have another new river cruise ship we plan to bring into service in 2027.
“In aligning service standards on our river cruises with those of ocean cruises, we have generated significantly higher customer satisfaction and greater demand. Bookings for the full year, at 21st September, 2025 deliver a load factor of 87% and a per diem of £351, 1% lower and 7% higher, respectively on last year,” he said.
