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Holidaybreak launches “no-frills” camping website
Holidaybreak has reported 2004 pre-tax profits flat at £28 million despite increasing holiday sales.
The parent company of brands such as Superbreak, Eurocamp, Keycamp and Explore Worldwide, sold 2.3 million holidays in the 12 months ending September 30, a rise of 300,000 over the same period the year previously.
But pre-tax profits rose only from £27.9 million to £28 million. Sales for 2004 were up 8.5% to £218.6 million, with hotel breaks up 24%, adventure travel up 12% but camping down four per cent.
European camping and mobile home holidays were down to 570,000, against 580,000 in 2003. Operatng profit for the divison dropped to £13.7 million from £18.9 million.
The group said: “As well as lower volumes, profitablity was affected by a mismatch between customer demand levels and capacity, exacerbated by a major shift in regional demand patterns.”
A statement said the group was to focus on maximising yields and optimising distribution, particularly via the internet, which accounts for 20% of overall sales.
Holidaybreak is to launch a “no-frills” camping internet site ugogo.com this month in an attempt to drive low season sales.
Holidaybreak incurred exceptional operating costs in the camping division of £2.6 million in 2004, including £1.6 million in relocation costs of Keycamp’s sales and marketing operations and the closure of an office in Sutton.
Chief executive Richard Atkinson said issues affecting camping had been “robustly addressed” and the group was looking for an improved performance in 2005.
He said: “Trading for 2005 has started broadly in line with management expectations. Overall sales are up eight per cent compared to the same point in 2004. We aim to achieve attractive margin performance, a good trading result and further cash generation.”
Forward sales in camping are five per cent down with an 11% cut in capacity, while hotel breaks are 10% up and adventure is 34% ahead.
Report by Phil Davies
Phil Davies
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