Saga, the British lifestyle company that focuses on customers over the age of 50, has reported a strong improvement in the profitability of its two ship cruise operations in six months to July, year on.
Revenue rose to £43.3 million from £38.1 million in the same period last year, while gross profit increased to £8.6 million from £4.5 million. Operating margin improved to 5.2% from 1.6%.
“Total passenger days in the Cruising business were up 13,000 (8.1%) through improved load factors on both of Saga's ships. Together with improved per diem yields and higher on-board revenues, this resulted in a £5.2 million (13.6%) increase in revenue from the Cruising business,” the company said in a statement.
“In the Cruising business, we have extended the Saga brand into Third Party Cruising, through agreements with four separate cruise lines. Initial demand for this product has been strong and, encouragingly, 30% of the demand has originated from new customers - those that have not booked a cruise or holiday with us before - with a further 19% of the demand from people who have not holidayed or cruised with us for over 3 years,” Saga said.
The company owns the 37,000 gross ton Saga Sapphire and 19,000 gross ton Saga Ruby II, both of which were built in Germany in 1981.
