Investing.com — British travel and insurance company Saga () reported on Tuesday that first-half cruise bookings surpassed expectations and holiday revenue increased, though the company cautioned that full-year holiday passenger numbers may decline due to the Middle East conflict.
The company said it remains on track to meet its full-year guidance. Shares in the company fell about 1%.
Ocean cruise revenue for the first half is expected to exceed the prior year, driven by a 13% increase in booked per diems. River cruise revenue for the first half is also expected to grow compared with the prior year, with booked per diems 4% higher.
Saga’s restructured insurance operations surpassed early targets under a new Ageas partnership, triggering a £10.5 million payment, the company said.
Full-year holiday revenue is expected to be marginally ahead of the prior year, though passenger numbers could be slightly behind.
More customers are choosing shorter short-haul holidays rather than long-haul trips as a result of the Middle East conflict, Saga said.
“We have a high level of confidence when looking ahead to the full year and beyond, with customers typically booking well in advance, and commodity and foreign exchange risk now fully hedged to the end of 2027,” Saga said.
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