p14 city feb20 18/2/09 12:55 Page 14
City & finance
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Carlson forecasts
4% fall in sales
Martin Ferguson.
Waller said the diversity of Carlson Wagonlit’s
IHG revenue in
CARLSON Wagonlit Travel has predicted a fall of clients – including a large presence in the public
up to 4% in sales this year. sector – meant the business had a better chance
In 2008, the travel management company saw of coping throughout the downturn.
downward slide
a 7% increase in sales on the previous year. He warned companies with flimsy business
As corporates cut back on travel and slash models that they could go to the wall this year.
budgets, the company admits it is feeling the “Woolworths deserved to fail because it was
INTERCONTINENTAL Hotels Group has admitted pinch. lazy and survived when times were good. But
that 2009 will be a difficult year after revealing But despite the downturn, Andrew Waller, when things got tough it couldn’t cope,” he said
a 6.5% decline in revenue per available room Carlson Wagonlit’s executive vice-president for Waller has predicted this year’s trading would
(RevPAR) in the last quarter of 2008. the UK and Ireland, was confident the company be one of the worst in history, and said the global
In January RevPAR dropped 12.2% due to was in good shape to weather the recession. nature of the downturn was unprecedented.
cutbacks in business travel and a decline in Asia He revealed it had already won £20m of new He said some corporates around the world
Pacific demand. business in January. had cut travel spend by up to 50% and
Chief executive Andrew Cosslett said he does “We have grown our business in terms of sales that UK travel management companies had
not see an improvement in the near future and by more than 50% in the last three years and our experienced falls of up to 30% in transactions
believes the industry faces a tough time this year. client retention sits at 97%. in January.
IHG met 2008 forecasts with a 13% rise in “Whenever I hear people question the
profit to $535m and a global RevPAR increase of value of TMCs I quote these figures,” he said. ■ Business Travel Show 2009 report, p28-30
0.9%. Overall revenue was up 5% at $1.85bn.
Shares in the group have lost 15% of their
value so far this year, with New York’s Dow Jones
index valuing the group at $2bn. Rock buys MRL to grow reach
Cosslett believed the timing of IHG’s $1bn Hol-
iday Inn relaunch, which it will press ahead with ROCK Insurance has made its second acquisition range of superior quality personal lines products
despite the downturn, was perfect considering a of the year snapping up specialist personal from a trusted source.
general trend of downgrading from luxury to insurer MRL Insurance as part of its plan to “Rock’s acquisition of MRL will take us into
mid-market hotels. expand into new markets. new markets with potential for significant
MRL Insurance was established in growth.”
Evolvi’s revenue
1975 and is, according to Rock man- MRL Insurance’s founder, Alan
aging director Antony Martin, Reif, will join Rock Insurance as a
widely recognised as an innovator director to manage the personal
increases by 47%
within the insurance industry. insurance products.
The acquisition is de- He said: “MRL brings a
EVOLVI Rail Systems, the online business rail signed to broaden Rock’s raft of additional prod-
booking and ticketing specialist, has revealed a range of financial serv- ucts and services to
47% increase in revenue for 2008. ices to include travel plus Rock Insurance’s portfo-
Revenues have grown from £150m to £220m car, home, life, health, lio, while Rock’s infra-
on the back of contract gains and renewals. wedding, pet and com- structure and continued
The company partners with eight of the top mercial insurance as well expansion will assist in
10 corporate travel management companies as car breakdown assis- taking MRL to the next
in the UK. tance and home emer- level.”
It recently renewed its contract with Co-oper- gency assistance. Last month Rock bought
ative Travel Management and won a Home Office Martin said: “We are ex- AIS Direct, and is still
deal to provide self-booking reservations and tick- cited to be able to offer our looking into other potential
eting with Carlson Wagonlit Travel and Amadeus. customers an extended Rock’s Antony Martin and MRL’s Alan Reif growth opportunities.
14 20.02.2009
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