Strong trading at Holidaybreak despite flooding

12th Aug 2010

Trading at specialist tour operator Holidaybreak remains in line with management expectations despite being hit by flooding in southern France.

Releasing an interim management statement covering the period from March 31st to August 11th, the education, leisure and activity travel provider said it remained “confident of delivering a good financial performance for the year”.

The group offers breaks in the UK and Europe.

“Given overall economic conditions, I am very encouraged by the resilience and financial performance of our business,” said chief executive Martin Davies.

“We remain focused on cash generation and cost control whilst continuing to ensure that we invest sensibly in the business.”

The report is in contrast with UK competitor InterContinental Hotels, which this week reported a slowdown in demand among British holidaymakers.


Education, Education, Education

The education sector was particularly encouraging for Holidaybreak, with sales at PGL UK outdoor education centres up by eight per cent.

Educational properties are presently 76 per cent booked for the 2010/11 season.

However, the school tours business was down five per cent, although it is achieving improvements in gross margin.

Hotel break sales were four per cent below last year, with encouraging signs of recovery have been recorded in recent weeks, the company added.

Adventure Travel sales intake is currently level with last year.

Cote d’Azur

The positive statement comes despite an eight per cent slump in camping holiday sales.

Holidaybreak was affected by flooding in the Cote d’Azur in July, with the loss of 74 mobile-homes. The organisation was not insured against such - as such insurance is not available at “commercially sensible” rates, leading to a cost of £1.2 million.


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