007-10_TTGB NEWSv2 5/11/08 18:16 Page 9
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Financial results round-up
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The past month has seen a spate
of profit warnings, slashed dividends and
share prices heading south, including…
Delta’s net loss for the quarter ending
September 2008 was $26 million.
HRG’s share price slipped to its lowest ever
Budget boom bucks trend
level, trading at 18p at one stage last week,
down from 90p when it refloated on the stock
exchange two years ago.
as corporates tighten belts American Express’ shares rebounded
following the US presidential election to reach
$29.7, up from a low of $20, but still way down
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The budget hotel market is bucking the the company. I think people appreciate the from the $65 at which it was trading at the
market trend and seeing increases in bookings as importance of cost saving during difficult start of the year.
corporates rein in costs and travellers downgrade. economic times such as these.”
Premier Inn-owner Whitbread defied the Stevens said that for the first time, budget British Airways was expected (at time of
financial gloom by posting a 7% jump in like- hotel chains are approaching travel buyers and going to press) to post half-year results
for-like sales in the first half of the year. And heads of procurement to discuss deals. “A year showing operating profits down by 79%.
rival chain Travelodge saw a 45% increase in ago budget hotels were not interested in talking Analysts predicted the flag carrier’s results
business travel last month, compared with the to corporates. But now would be worse than many other legacy
same period last year. Travelodge is also they see it as an carriers, tipping an operating profit of
spending £125 million on opening 22 hotels important revenue £89 million – compared to £556 million for
before this Christmas. stream. the first half of 2007.
Travelodge said the forced review of corporate “They want to talk
spending was pushing more people towards its about our volumes and Rezidor, parent company of hotel chains
type of accommodation. value-adds. I even have Radisson SAS and Park Inn says net profits
Accor meanwhile is concentrating its capital a Travelodge account for the third quarter of this year were down
expenditure on its budget brands, Ibis, Etap and manager now, that by 33% on last year to ¤10.1 million and
Hotel F1, which will comprise 60% of its new would have been operating revenues were down by 4% to
rooms next year. unheard of a year ago." ¤192.5 million.
Amadeus’s business development manager, Chambers Travel
Guillaume Thevenot, said bookings were sales director Fiona Marriott International has suffered a
strong until the end of the year, but predicted Vandersluys said: “If 28% fall in third-quarter profits and has
changes for 2009. “Travel agents are already anything there is a downgraded its forecasts for 2009.
demanding more content for budget brands sway towards the
“There are
and independent hotels,” he said. budget end of the Orient-Express Hotels’ net earnings fell
Valerie Stevens, head of procurement for tyre market. They have
similarities with
71.7% year-on-year to £4 million in the
specialists ATS Euromaster, said she had seen a really upped their post-9/11, three months ended September 30.
shift to the budget brands – but this was being game. They are in
but this is far
initiated by employees. “Our employees are some excellent
more serious”
Cathay Pacific has issued a profit warning
using budget hotels in increasing number, but it locations and have a saying fuel hedging losses of £360 million will
is being driven by the travellers themselves, not real contemporary feel.”
p26
contribute to disappointing results for 2008.
...Green corner: hotel bosses say CSR still a priority, CWT’s new emission reporting p18....
ttgbusiness.com a79 november 2008
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