Price Hikes for Available Berths7 Mar 2021 07:48
Do we think that the available unsold berths, will have their prices sharply increased when the cruises set sail this summer? Clearly, the first vessels to leave will be filled with people that have already been “price-guaranteed”, due to the holidays being cancelled prior to the pandemic. I guess what I’m getting at here, is can we expect sharply increased revenues which (a) obviously brings in extra money! but (b) will redress Saga’s Balance Sheet very quickly? So, by the end of 2022 for example, the company could well be in rude health? My feeling is that if you’re going on a Saga cruise, then you can expect to pay at least 30% more for exactly the same cruise, that you would have taken in 2020. But it’s not a ‘given’, as EasyJet flights to Paphos for example, are pretty much the same price for September 2021 as they were last September (2020), when I flew there. But, if Saga DO go for a carefully thought through price hike, then you can expect our share price to really move on to £6 in short order and, quite possibly, this year. Those hikes will simply drop straight down to the bottom line, which would be superb! This is such a compelling company to be invested in, but they must be careful not to abuse the ‘grey pound’ that they are so loved by and who are so loyal to the brand. I’m happy that the Directors will gauge this nicely and achieve a happy medium, which creates a win/win scenario, both for the company and its passengers alike. ATB