Claims / increase in profits18 Aug 2020 15:58
Over the years Saga have built up a great holiday business for the over 50’s and one of a few companies to specialise in that age group.
They spent large sums on new ships to capitalise on that growing business market sector and forecasts of increasing ageing population.
We still have ageing population and even fewer companies now concentrating on the over 50’s sector, so that market is still there and if anything will be growing faster after Covid is sorted out. Remember Thomas cook also went bust and they had their own cruise business which also needs picking up.
If they sell off the travel side to be left with just insurance they will lose out big time, and will have to compete with far more players in the insurance sector with no captive own customers.
Now is not the time to sell off the ships when demand will pick up in a few months so we just have to sit this out for a few months more.