Saga Group’s tour operating division has seen booked revenue for 2025-26 rise by 10% over this time last year to £126 million.
Passenger numbers are 11% ahead year-on-year at 39,000, the company reported in a trading update for the period from August 1 last year to January 29.
Saga’s travel business, which includes Titan, is expected to report an underlying pre-tax profit in the “high single-digit millions”, compared with £1.5 million the previous year, reflecting revenue growth of around 15% and passenger growth of 9% on a comparable basis.
The over-50s specialist also reported “another excellent year” for its two ship ocean cruise arm, building on momentum in 2023-24.
Pre-tax profit at the company’s river cruise operation continued to grow with a load factor of 89%.
The group said: “We will continue to grow our river cruise business, supported by the introduction of our new ship, Spirit of the Moselle, which will join our fleet in July 2025, increasing capacity.
“For the full year and including bookings for this new ship, the load factor is 55% and the per diem is £357, which compare with 59% and £335 respectively at the same time last year.”
Separately, Saga announced that it had successfully refinanced its corporate debt in full, strengthening its financial position and enhancing liquidity.
“The new facilities, combined with the low-cost fixed-rate ocean cruise ship debt facilities which will be retained, will result in an initial pro forma blended interest rate of c.7.6%,” the group said.
Chief executive Mike Hazell said: “Throughout the last financial year, we made significant operational and financial progress. We concluded our review of opportunities that would optimise Saga’s financial and strategic outlook and entered into the 20-year arrangement with Ageas for our motor and home Insurance Broking business and the sale of AICL, our Insurance Underwriting business. Alongside this, we successfully refinanced our corporate debt.
“We continued to generate strong demand for both our cruise and travel businesses and the group expects to report an underlying profit before Tax that is marginally higher than the prior year on a like-for-like basis1 and ahead of our previous guidance.
“As we look ahead, we expect the momentum to continue to build in our cruise and travel businesses.
“We remain focused on Saga being the largest and most-trusted brand for older people in the UK, continuing to drive growth, reducing debt, growing our customer base and deepening the connections we have with our customers.”
Results for the year ending January 31 are due to be issued on April 9.