CNG shares jump 9% on Leading Hotels deal

SHARES in travel reservations software company CNG Travel jumped 9% yesterday after the company signed a major deal that will see its technology used in the world’s top five-star hotels.

The Leading Hotels of the World group will use CNG software to handle sales of rooms in 436 luxury hotels around the world.

The group includes well-known Irish hotels such as Adare Manor in Co Limerick and Dublin's Westbury.

Its member hotels generated revenues of $412 million (€308m) last year, with an average room rate of $346 (€258).

CNG chief executive Finbarr Power said the deal was a significant step forward for the company and that travel agents who used CNG software would now be able to offer the best available rates for top-drawer hotels to their customers.

Agents will also benefit from sales commissions that are higher than average, while CNG's software shortens the time involved in collecting and distributing commissions, making accounting and administration easier.

William McDonald, the Leading Hotels group's head of interactive reservations, said CNG was chosen because its software provided the three things that corporate travellers wanted from their travel agents a wide choice, a quality booking service and competitive rates.

"CNG's distribution proposition delivers on those requirements and will enable our hotels to control critical factors like rates and availability, while benefiting from wider distribution to customers who demand the best," he said.

Mr McDonald said the group's use of CNG would drive sales and market share, while at the same time protecting its core values, which are seen as crucial to the success of their brands.

CNG shares added 6p (8.7c) to reach 72p (€1.05) on London's Alternative Investment Market, where the group floated earlier this year.