Demand for Saga's ocean cruises has boomed, with prices rising 10% to an average of £394 a day. The company's ship cabins are 79% full already for the current year, with a per day cost of £447, and its best-selling cruise takes passengers around ports in the UK. Saga says it is well hedged for current foreign exchange and oil commodity risks for the next two years.
The company is confident it will make at least £100 million in annual underlying profit before tax by 2030. According to Saga, it is protected against any downturn in consumer confidence due to its older, more affluent, and resilient customer base, with customers having time on their hands and money to spend, protecting the business from the squeeze on living costs. Saga's resilient customer base tends to travel later in the year, with peak season in September and October, reducing worry about the Middle East situation's impact on summer travel.
Saga is trialling city breaks in Chichester and Canterbury, offering customers stays in university halls and guided tours of historical landmarks. The company sold its insurance underwriting business to Ageas in July 2025. Saga has no cruises and only limited holiday bookings to Egypt, Cyprus, and Turkey.
Holidaymakers' travel plans have been disrupted due to the Middle East conflict, with many cancelling plans to travel to hotspots in the Gulf, including Dubai, and there have been concerns that consumers will rein in spending as energy and grocery bills look set to surge this year.