Saga reports strong ocean cruise bookings for 2023/24 with river set to return to profitSaga reports strong ocean cruise bookings for 2023/24 with river set to return to profit

Revenue jumped by 54% to £581.1m, due mainly to the return of cruise and travel, with revenue at Saga’s travel business growing tenfold.

Ocean cruise [Spirit of Discovery and Spirit of Adventure], reported an underlying loss before tax of £0.7m for the full year but with considerable improvement in the second half, when the business reported an underlying profit before tax of £6.2m.

Ocean cruise revenue, of £168.3m, was more than 100% ahead of 2021/22, supported by a full year load factor of 75% and per diem of £318. This compares with 68% and £299 in the prior year.

Strong 2023/24 ocean bookings

Ocean bookings for 2023/24 are strong, representing a load factor of 72%, and per diem of £339 at March 26, 2023. This places Saga on track to achieve its target of £40m EBITDA (excluding overheads) per ship.

Commenting on the cruise business, Euan Sutherland, Saga’s Group CEO, said: ‘[ocean] continued to see strong customer demand and bookings for 2023/24 are on track to meet our targets with river set to return to profit.’

River set for profit return

Saga’s river cruise business reported revenue of £28.8m compared with £1.7m in the prior year, and an underlying loss before tax of £5.1m. The company has long-term leases in place for two river cruise ships, Spirit of the Rhine and Spirit of the Danube, alongside other charters which are managed on an annual basis.

River cruise bookings for 2023/24 are very positive with the number of booked guests 23% ahead of the same point last year, reflecting a load factor of 63% and per diem of £298 at  March 26, 2023 Saga reported.

Customer satisfaction

Sutherland said, ‘Customer satisfaction across both ocean and river Cruise remains exceptional at 9.0 and 8.2 out of 10, respectively at end January 2023.’