Over-50s travel specialists Saga says it has seen a spate of cancellations for its cruises and holidays as a result of the coronavirus (Covid-19) outbreak.

The firm, headquartered in Folkestone and with a call centre in Thanet, says it expects the reaction to the health crisis to have an impact on its travel business - prompting concerns for its financial situation.

In a trading update, it said it was "closely monitoring the evolving situation with respect to COVID-19" and "our focus is to ensure customers, guests and colleagues are safe and reassured in all circumstances".

It says it has seen a "higher level of cancellations for departures in the near-term and more generally a lower level of bookings for departures further out".

The firm says its cruise business continues to only depart and return to UK ports and "we have flexibility on destinations visited".

Tour operations have also seen a rise in cancellations and people not booking - a trend which is being seen across the travel industry.

It says forward passenger bookings for 2020/21 were down around 20% versus the prior year, with a more significant impact in recent weeks.

Looking ahead it said: "The evolution of Covid-19 and the impact this will have on full year earnings for 2020/21 cannot be predicted with any certainty at the current time."

It anticipates its travel business will be impacted, but that its insurance offering will remain "largely unaffected".

However, given recent financial challenges, some analysts have suggested it may have to sell-off its insurance business if the pressures to its travel business mount.

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