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Saga’s travel profits up 18% despite Iraq and SARS
The travel arm of Saga saw profits rise 18% to £10.5 million in 2003 – an “exceptionally difficult year for the travel industry”.
The group, which provides financial services, media and travel to over-50s, saw overall pre-tax profits rise from £50.2 million in 2002 to £81.6 million last year.
Releasing financial results for the 12 months ending 31 January, the company said its travel division had a promising initial booking period in late 2002. But the Iraq war and the SARS outbreak “put a break on business at a critical time in the booking cycle”.
However, the company said it was able to offset the weakness in the broader market through a combination of nw income streams, such as its first summer cruise season chartering the ship Saga Pearl and a joint marketing initiative with Hilton; tactical marketing initiatives and “careful management of costs”.
A company statement said that travel bookings were now “reflecting a return of consumer confidence”.
“Looking further ahead, the purchase last year of the sister ship to our very successful cruise vessel Saga Rose will enable the company to further increase capacity to meet the strong demand for this product when the ship enters service in 2005,” the company said.
Commenting on the overall figures, chief executive Andrew Godsell said: “Saga is constantly evolving to meet the changing needs of its marketplace and, with immense brand strength, we believe is in excellent shape to move forwards. Our strategy is geared towards further organic growth through maintaining our absolute focus on serving people aged 50 and over.”
The company claims its database is showing growth of 7% a year, giving Saga access to more than eight million current, past and potential customers.
Report by Phil Davies
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