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*Cruises resume on June 27 27
* Appoints new CEO insurance
* Sees 60% 2021/22 revenue target from tour bookings (adds new CEO appointment, analyst quote, background on insurance business)
June 14 (Reuters) – Britain’s over-50s holiday group, Saga Plc, said Monday it would likely resume its cruises on June 27, spurred by high demand for tours despite repeated closures and echoing similar projections from other cruise companies. operator.
A year after several cruise ships were hit by major coronavirus outbreaks, cruise lines including Royal Caribbean Group and Carnival Corp have made plans to resume cruises this summer, especially as large numbers of Americans are being vaccinated.
As demand for tours grows, bookings should represent 60% of Sagas’ 2021/22 revenue targets, it said.
Saga had backup plans in place to address any uncertainty surrounding COVID-19 restrictions, including running shorter-term cruises with fewer guests if needed.
The company said Steve Kingshott, president of Tesco, will take over as chief executive of insurance in the fall, replacing Cheryl Agius, who was appointed in 2019.
Sales of Sagas’ car and home policies were down 2% year-on-year in the four months to May 31. The travel policy has so far been 5% less than a year ago.
Last year, Saga turned down what it called an unsolicited and highly conditional approach of 33 pence per share to the company from a consortium of two US financial investors.
The insurance business had to some extent offset the pandemic blow to travel, as the company paid fewer auto insurance claims during the lockdowns, and analysts expect Kingshott’s appointment to boost the divisions’ momentum.
Insurance provides key earnings support and we welcome the division’s new CEO, Peel Hunt analysts said in a note.
The next phase of reopening in Britain, initially scheduled for June 21, is expected to be postponed due to concerns about the spread of the Delta strain of the coronavirus.
However, due to the lockdowns, Saga said 73% of canceled cruise bookings were retained and customer retention in tours was stable at 42%.
Shares were up 0.6% lower to 408 pence by 0826 GMT, barely denting the more than 60% gains so far in the year.
Reporting by Vishwadha Chander in Bengaluru; Editing by Rashmi Aich and Emelia Sithole-Matarise
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