Saga ocean cruise operations remain on track to deliver earnings target

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Written by Kari Reinikainen Kari Reinikainen

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Published: 27 September 2022 27 September 2022

Ocean cruise operations of Saga plc, the UK based travel to insurance services provider to those over the age of 50, remain on track to deliver the company’s earnings targets for its two high end of the market ships.

“We have already seen strong early 2023/24 bookings, representing a load factor of 42% and per diem of £325. This is on track to deliver our commitment of £40million EBITDA per ship,” Saga said in a statement.

"Following our return to service after the pandemic, our Ocean Cruise business secured strong bookings and is on track to achieve our targets for this year and next, while we also made the final preparations for our new digital Saga Travel business which has just launched the first of our new products,” CEO Euan Sutherland said in the statement.

Ocean cruise operations of the company generated positive EBITDA and cash flow in the first half of the year, supported by a load factor of 66% and a per diem of £318.

Bookings for the full year, at 18 September 2022, reflected a 74% load factor with a per diem of £319.”We are on track to achieve the 75% target load factor for 2022/23 (84% in the second half) as we return to pre-pandemic operating conditions following the removal of all temporary COVID-19 measures,” Saga said.

During the last six months, the company combined its Ocean and River Cruise teams into a single team to deliver the same service across all ships, encouraging guests to cross-sell between the two. “River Cruise to Ocean Cruise cross-sell at 31 July 2022 was 18% and vice versa was 6%. Both represent improvements year-on-year and demonstrate a tremendous opportunity moving forwards,” the company said.

Looking ahead to the second half of the year, Saga expects a continued recovery in our Cruise and Travel businesses. “We anticipate that the headwinds experienced in the first six months will recede as customer demand continues to rebuild and we are able to grow our bookings. Whilst we are mindful of the broader inflationary environment in the UK, the exposure within these businesses has been largely offset or, in the case of fuel, hedged, and at present, we are not seeing any impact to demand from our customers,” the company said.

Intent to book cruise exceeds 2019 levels in UK - CLIA

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Written by Kari Reinikainen Kari Reinikainen

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Published: 26 September 2022 26 September 2022

 

Cruise Lines International Association (CLIA) has released new consumer sentiment data showing the demand and perception of cruise holidays are now greater than in 2019, the organisation said in a statement.

According to the survey, intent to book a holiday at sea among UK passengers now exceeds levels from three years ago:

* 85% of respondents who have cruised previously said they intend to take a holiday at sea again, a 6% increase from 2019

* Furthermore, among travellers who have taken a cruise in the last six months, 90% said they intend to cruise again

* Of those who have never cruised, 66% are open to cruising, a 0.5% increase from 2019

Overall, 69% of international cruise holidaymakers stayed at least one night in their local destination prior to embarkation, with 43% extending the stay by two or more nights. And 67% stayed at least one night after disembarkation, with 34% extending by two or more nights, while 60% said they later returned to a destination they had first visited by cruise. 

In addition, as cruise lines continue to advance their sustainability initiatives in pursuit of net-zero carbon cruising by 2050, the percentage of international travellers who say the cruise industry is a leader in responsible travel reached 51%, a 9% increase over the past year.

Andy Harmer, CLIA UK & Ireland managing director, said: “This year has been enormously encouraging for cruise, and it’s heartening to see demand for a holiday at sea is set to continue. The sheer number of repeat passengers we’re anticipating, combined with interest from those yet to sail, means the appeal of going on a cruise remains as strong as ever.

“The economic advantages passengers bring to the destinations they visit is also clear, meaning local businesses - from taxis, to restaurants to hotels - benefit accordingly. And we’re delighted to see the raft of sustainability initiatives we have in place, including our 2050 net-zero carbon goal, were recognised.”

The sentiment data is based on an independent, international survey of 4,000 holidaymakers in eight countries: the UK, France, Germany, Italy, Spain, the USA, Canada and Australia.

Cruise veteran Bob Prieto joins Atlas as Vice President of Guest Operations

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Written by Teijo Niemelä Teijo Niemelä

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Published: 25 September 2022 25 September 2022

Atlas Ocean Voyages has appointed cruise industry leader Bob Prieto to serve as vice president of guest operations, it has been announced by James A. Rodriguez, the line’s president and CEO. In his new role, Prieto is chiefly responsible for guest services, guest relations, and the past-guest loyalty program.

“Atlas is renowned for the outstanding guest experience on board our luxury, yacht-style vessels,” said Rodriguez. “Bob’s broad travel industry background will be key as we strive to deliver extraordinary service levels pre and post cruise. We are delighted to welcome him to our shoreside management team.”

Prieto brings more than 30 years in the travel industry to his new position. Most recently, he was vice president of sales for small-ship luxury line SeaDream Yacht Club. Prior to that, he worked with Rodriguez at Oceania Cruises for 15 years, where in the sales department he rose through the ranks from manager to vice president. Prieto began his cruise career working in the mailroom at Norwegian Cruise Lines in 1989, eventually managing the inside sales team.

“Having worked with James previously, I am excited to join Atlas,” said Prieto. “My number one goal is to make the guest experience before and after the voyage match the excellent onboard service. I look forward to working with our valued travel advisors and past guests and to exceeding their expectations.”

Atlas Ocean Voyages caters to global travelers with a passion for exploring iconic and off-the-beaten-path destinations. The stylish and intimate expedition ships offer every five-star comfort, from an all-inclusive onboard experience and luxurious accommodations to in-depth excursions and customized private tours for a truly personalized voyage.

With only 94 accommodations, guests enjoy nearly a 1:1 guest-to-staff ratio and a special camaraderie and bond with their fellow explorers. This perfect balance lets discerning travelers immerse themselves in unique and awe-inspiring moments in remote and captivating places, from Antarctica to the Arctic, as well as to discover sought-after ports of call throughout Northern Europe, the Mediterranean and the Americas.

Holland America Line’s Volendam returns to cruise operations

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Written by Teijo Niemelä Teijo Niemelä

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Published: 24 September 2022 24 September 2022

Two-and-a-half years after the cruise industry pause, Holland America Line’s Volendam returned to cruising today at Trieste (Venice), Italy. The ship embarked guests for a 14-night Holy Land and Ancient Kingdoms Explorer itinerary.

To commemorate the occasion, Holland America Line held a ribbon-cutting ceremony in the terminal to open embarkation, attended by the ship’s captain and senior officers, with flag-waving fanfare from team members lined up to greet guests as they boarded.

“This is a milestone day as Volendam embarks on its first full cruise since the industry-wide pause,” said Gus Antorcha, president of Holland America Line. “We are thankful for the incredible work of the shipboard team these past six months, caring for Ukrainian families. As we get back to cruising, we are excited to welcome guests on Volendam for a series of longer voyages that include explorations of the Mediterranean, Amazon and South America.”

Volendam has spent the past six months in Rotterdam, the Netherlands, under charter to the City of Rotterdam to house Ukrainian families. The ship was a temporary home for up to 1,500 refugees through the charter, part of a larger commitment from the Netherlands to accommodate 50,000 people who fled the war in their homeland.

Following the Holy Land and Ancient Kingdoms cruise, the ship will sail 14-day itineraries to Greece, Turkey, Italy, Croatia and Montenegro. In late October, the ship will reposition to Fort Lauderdale, Florida, to offer a 28-day Amazon Explorer voyage, followed by a series of Caribbean cruises. In January 2023, the ship departs on the 74-day Grand South America and Antarctica Voyage that circumnavigates the continent.