p16 city July3 1/7/09 21:01 Page 16
City & finance
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HotelConnect
‘Healthy’ Youtravel
sees June jump
ACCOMMODATION specialist HotelConnect has
rejects rumours
reported June sales up nearly a third on last year.
Commercial manager Ian Ackland said the
Robin Searle.
Riches said Youtravel was on track
32% rise appeared to have been triggered by a ONLINE accommodation-only supplier to maintain turnover of around
promotion giving away shopping vouchers and Youtravel has hit out at continuing £80 million and serve more than
guides with every booking. industry whispers about the commit- 500,000 customers, and expected to
Ackland said April and May this year had been ment of its investors, and insisted it is post a “healthy profit” this year.
level with 2008, and the June increase was on track to post a “healthy” profit in “It might not be as aggressive as
particularly surprising because June 2008 had its third year of operation. Plan A, but we are heading in the right
been a very strong month. Sales and marketing director Paul direction,” he said.
He added that 14% of sales were now for travel Riches (pictured) said rumours that majority “People predicted we would be dead and
within a week and 44% for within a month, which shareholder Barclays Ventures was considering buried within three years but now we are in a
made forecasting “increasingly difficult”. its position were completely unfounded. position where we are the largest independent
The top end of the market was holding up, he “There is inevitably going to be some jealousy accommodation-only provider in terms of
said, with the proportion of customers booking and backstabbing when you are successful, but revenue and customer numbers.”
four-star hotels holding steady at just under 40%. the reality is that this [Barclays withdrawing] is Riches said a change in the no-frills airline
HotelConnect’s latest survey of the most absolutely not on the agenda,” he said. model, which meant prices were unlikely to
popular destinations showed a recovery for some “You can see this from the support and invest- rocket in the peak season, would allow Youtravel
eurozone cities, with Venice up 32% on last year, ment they are making in the business.” to offer competitive late prices against
Rome up 29% and Barcelona up 26%. However Riches admitted trading this year continued to traditional packages while retaining margins.
Paris was down 11% and Amsterdam down 5%. be down overall, but said year-on-year improve- He said promising early sales for the second
In North America, Las Vegas had seen a 305% ments in May and June pointed to a much- shoulder season in September and October also
increase after hotels increased availability and needed strong lates market (TTG June 26). boded well.
introduced attractive tactical rates. It had taken
over as the most popular destination from New
York, which was down 43%.
Brokers divided over Tui and Cook
A CITY tour operator specialist has expressed year may have helped both operators as holiday-
Fuel cost rises to
confidence in Thomas Cook and Tui Travel makers sought to book with big-name firms.
despite a broker advising clients to sell the “When the public read stories about travel
hit RCCL earnings
shares of both firms. companies going bust and people being stranded
Evolution Securities issued a “sell” note on overseas, the initial reaction is to book with a
both companies last week. It said the operators’ brand they know and trust: Tui and Thomas Cook
ROYAL CARIBBEAN Cruise Line has warned that cuts in capacity were encouraging tourists to are very big names,” he said.
rising fuel prices and the swine flu outbreak will book direct with hotels and airlines. Batram is recommending clients to buy
hurt its full-year earnings. But KBC leisure analyst Nick Batram said he Thomas Cook shares because he believes the
The US-based line had previously predicted a was “positive” about both companies. uncertainty caused by its majority shareholder
2009 profit of about $1.35 per share, with a 10 “Tui and Cook have a lot to offer – they have Arcandor going into bankruptcy protection is
cents per share deduction for every 10% rise in good management and are well-run businesses.” already priced into the shares. He is advising a
fuel prices. But it said this week that since that He said publicity from the collapse of XL last “hold” on Tui.
April forecast, its fuel costs had risen about 45%.
Royal Caribbean also announced earlier this
Share prices
month that the swine flu crisis would lower its
The last month has seen a decline
260
full-year earnings by about 22 cents per share.
in Tui and Cook’s share values,
250
leading to conflicting investor
240
The company is starting a $250 million share
advice from City experts
230
offering. It plans to use some of the money raised
220
to pay back some outstanding credit agreements.
210
200
■ Tui Travel
■ Thomas Cook Group May 26 June 2 June 9 June 16 June 23
■ Seabourn Odyssey launch: Cruise, p20
16 03.07.2009
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