Saga PLC (LON:SAGA) confirmed the launch of a new VIP membership scheme to offset the drop in high-spending cruise customers.
The over-50s specialist said all customers will automatically become members of Saga Possibilities, which will offer affinity deals with Apple, Nuffield Health, wine firm Majestic and restaurant group Prezzo.
Saga has also ordered a new cruise ship, Spirit of Adventure, to be delivered in August 2020.
READ: Over-50's specialist Saga says core insurance, travel businesses continued good start to the year
The group saw a 1% drop in its high affinity customers or those who spend £1.900 or more in the half year to July at 477,000 though those that remained spent 4% more on average.
Lance Batchelor, chief executive, said Possibilities gives it a ‘more powerful toolkit’ to reward high spenders and grow their number.
George Salmon, Equity Analyst at Hargreaves Lansdown said: “Many of today’s retirees are asset rich and have comfortable pensions in place, and demographic change means this age bracket is swelling in number.
"While this means Saga has a potentially lucrative grey emerging market in front of it, the challenge is to first get the customer onside, then effectively cross-sell its numerous services “
Shares were unchanged at 196.2p.
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READ: Saga reports solid profits growth, fuelled by good performances in both travel and insurance
Half year profits fell 6% to £103mln from £109.9mln as Saga was hit by sterling’s weakness and a derivative loss, though the insurer and cruise ship group raised the interim dividend by 11%.
Revenues were flat at £435.4mln.