The cruise operations of Saga, the listed British lifestyle company that offers a wide range of services to over 50s, have performed well and the outlook is encouraging, said group CEO Lance Bachelor in a statement.

"Within our cruise operation, we continue to make improvements and investments to ensure that customer satisfaction levels are maintained at the highest levels. Currently, 98% of our cruise customers rate their experience as excellent or good and, during August of this year, both the Saga Sapphire and Saga Pearl II achieved their best ever overall customer feedback scores," he said in connection of publication of the group's interim results.

"The cruise operation remains at the heart of the Saga brand, continually demonstrating the service excellence and value that Saga is renowned for. The decision we have made to invest in our shipping capacity will be transformational for the cruise business and for our cruise customers. The precise details of the new ships will be finalised over the coming months and the result will be a significant upgrade while retaining the traditional features our customers cherish," Bachelor said.

The company earlier today ordered a 55,900 gross ton newbuilding at Meyer Werft in Germany for delivery in 2019, with an option for another ship for delivery in 2021.

"This means that all cabins will have balconies but we will still provide an intimate small‐ship feel (under 1,000 passengers), a high crew‐to‐customer ratio and great public spaces and entertainment facilities," he said, referring to the new vessel. Saga Cruises started its operations in the mid 1990s and it currently employs the 37,012 gross ton Saga Sapphire and the 18,859 gross ton Saga Pearl II. Both ships were built in Germany in 1981 and were bought by Saga second hand.

"We have made good progress again in the first half of the year in travel and in the year to date our reservation levels for departures in holidays and cruising for the remainder of this financial year and for the financial year ending 31 January 2017 are very encouraging," Bachelor concluded.