SAGA Holidays founder Sidney De Haan, who died this week aged 83, presented a textbook example of spotting a gap in the market.

Mr De Haan, a Folkestone hotel owner, realised that if older people could help fill his hotel during the off-peak holiday season, there was a need for providing holidays tailored for them. He set up Saga Holidays in 1951, later to become the Saga Group.

In the 1960s and 1970s, he expanded his holiday brochures to include resorts throughout the UK and Europe. Romania was the first destination he offered to holidaymakers. Mr De Haan was awarded a CBE in 1985.

Saga now arranges holidays in 65 countries worldwide. The group, which includes financial services, insurance and publishing, has two million customers in the 50-plus age bracket.

Paul Bach, editor of Saga Magazine, said: "I worked with Sidney from 1979 when I joined Saga, until he retired in 1984. He was an inspirational man.

"He was a good and decent man all his life and people who worked with him had enormous affection for him.

"He founded a huge empire, but there was never any grandeur about him. He always remained true and loyal to his East End roots. He was an innovative thinker and a brilliant man."

Mr De Haan moved to Somerset with his wife Margery after retiring. After she died, in 1994, he returned to Folkestone. He leaves three sons David, Peter and Roger, who is the group chairman.