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CNG high hopes for 2005
CNG Travel Group failed to meet its profit targets last year, posting losses of $5.5 million.
The company launched an online agency hotel booking product last year, Travel Lodging Connector (TLC), which despite a good uptake in the industry was not getting the level of bookings CNG had hoped for with regards to the company’s own hotel stock.
Gross hotel booking value reached $44.5 million through TLC, according to the company, but the launch of multi-GDS versions of TLC and introduction of “Prompt Pay” is anticipated to boost bookings, particularly for CNG’s own hotel stock.
In a brokers note CNG said, “2004 has clearly been a struggle”.
One of the challenges it has faced according to management is the move by major hotel brands to take distribution in house by guaranteeing the best rates on their own websites and more strictly controlling relations with online distributors.
A spokesman for the CNG also told TravelMole that as occupancy continues to pick up hotels have become more discerning about the distribution channels they use.
CNG described 2004 as a “false start”, with turnover up 15% year-on-year to $55.5 million, but a pre-tax loss of $5.5 million.
The AIM-listed company says it hopes to achieve profit in 2005 for the group.
Report by Ginny McGrath
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