Business travel showing ‘early signs of stabilisation’
Thursday, 27 Nov, 2009
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Business travel is sowing early signs of stabilisation against the backdrop of the worst global recession since the 1930s, Hogg Robinson Group reported today.
The group saw half year pre-tax profits almost halve to £3.3 million.
Revenue for the six months ending September 30 was down by nine per cent to £155.3 million over the same period a year earlier.
HRG said the frequency of travel on business by clients had reduced in the half year.
The period saw clients trading down, an increased level of online booking and greater use of technology, more use of advance bookings and restricted tickets, a re-negotiation of supplier deals and stronger travel policy compliance.
The number of home-based travel consultants grew to more than 180 in the UK as the group developed a virtual service network providing increased flexibility and reduced operating costs.
The business travel provider said there were “early signs of stabilisation” but the group needed to be prepared for the economic climate to remain challenging.
Chief executive David Radcliffe said: “In the middle of a tough recession we have delivered a very resilient performance.
“Our ability to provide our customers with excellent service and to help them control their travel budgets has helped maintain our strong client retention rate and secure net new wins.”
He added: “Whilst we have seen some early signs of stabilisation, visibility remains limited.”
HRG’s client retention rate was maintained at more than 90% with new clients including BMP Paribas, Scottish Enterprise Department and Wells Fargo.
by Phil Davies
Phil Davies
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