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Further camping cuts at Holidaybreak
Holidaybreak has identified £3 million-worth of cuts at its poor performing camping division this year.
The specialist holidays group revealed at its AGM that while its hotel breaks and adventure travel divisions were showing increased sales, camping business was down.
Hotel breaks and adventure travel now account for almost two thirds of Holidaybreak’s activities and are expected to show further growth.
Updating performance for the first four and a half months of the financial year ending September 2005, the company said hotel break sales were up seven per cent and adventure travel was up 22%. But camping sales have shown a nine per cent decline against an 11% reduction in mobile home capacity and 14% fewer tents.
A statement said: “We anticipate achieving operational and overhead costs reductions in this division of £3 million compared to 2004. Division management remains focused on stabilising occupancy rates, optimising yields and maximising camping’s 2005 financial result.”
The company said the camping division’s management team was already planning for 2006 when capacity will be “managed to achieve profitable utilisation levels”. New e-commerce distribution channels will be further developed and costs “will be subject to further ongoing rigorous review”.
Holidaybreak revealed that the internet now accounts for more than 30% of group sales and was growing rapidly.
The Indian Ocean tsunami disaster did not have a “material impact” on the group’s financial or operational performance at its Explore, RegalDive and Dutch Djoser tour operations.
Report by Phil Davies
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