Saga sails back into profit as older travelers lock in cruises; rivals see slower demand from younger holidaymakers

Saga Group PLC returned to profit in the first half, underscoring a contrast in consumer timing as older travelers lock in cruises months in advance while rivals face slower bookings from younger holidaymakers. For the six months to July, Saga posted a profit of £3.7 million, reversing a £116.9 million loss in the year-ago period. Revenues rose 9% to £328.2 million, and the company reduced net debt to £515.1 million from £617.2 million.

About half of Saga’s next-year berths on its ocean cruises have already been booked, with customers showing interest in the Caribbean, the Norwegian fjords and Europe. On an all-inclusive basis, travelers are paying around £437 a day on these sailings. In addition to cruises, Saga has been expanding holidays focused on hotels and specialty itineraries such as food and wine, archaeology or bird watching.

Saga chief executive Mike Hazell said the company’s customers tend to book very early and have more disposable income, which provides resilience to short-term economic volatility. He noted that the mix of offerings helps diversify risk and supports forward-booking strength. The group also highlighted that its older customer base has more time and leeway to plan trips well in advance, contrasting with more immediate booking patterns seen in other market segments.

In a separate report, On The Beach, the online travel group targeted at a younger demographic, warned that profits for the year to September would come in between £34.5 million and £35.5 million, below City expectations of about £38.4 million. Summer bookings were reported to be 12% higher than a year earlier, and winter bookings also climbed by 12%. However, the company flagged a continuing trend toward later bookings for Summer 2026, with customers increasingly waiting closer to departure dates. Analysts at RBC Capital Markets attributed part of the softer outlook to the Budget approaching, suggesting consumers may delay major holiday commitments until there is more clarity on finances. On The Beach chief executive Shaun Morton remained optimistic, saying the firm still expects winter demand to build and that Summer 2026 should gain momentum as confidence returns. The trend of later bookings has been echoed by Jet2’s Steve Heapy, who said the pattern has become more pronounced industry-wide.

Analysts described Saga’s focus on the over-50 demographic as potentially supporting sustained forward-booking momentum. Keith Bowman, an analyst at Interactive Investor, suggested easing mortgage rates, relative to rising rents, could for now benefit older consumers who are more likely to plan longer-ahead getaways. The mix of high-ticket, long-range cruise sales and expanding hotel-focused holidays positions Saga differently from younger-oriented platforms facing more immediate booking decisions.

The current dynamic reflects broader market forces in travel and leisure, with inflationary pressure, labor shortages and fiscal policy climate contributing to a cautious approach among certain consumer groups. While Saga is benefiting from steady demand among its core customer segment, On The Beach and other mid- and high-end online travel players remain watchful for further shifts as households reassess budgets ahead of the next fiscal-year cycle. The companies’ updates come amid a competitive landscape where holidaymakers increasingly weigh the certainty of planned trips against the prospect of late-deal pricing, a tension that could shape bookings through the remainder of the year and into 2026.