Dip in early sun holidays

The heat wave enjoyed last summer in Ireland has resulted in a dip in early 2014 sun holiday sales at the country’s largest travel agency.

That is according to director of Club Travel Ltd, Colman Burke, who was commenting yesterday on the firm’s accounts for 2013 where its pre-tax profits dropped by 24% to €3.3m.

This followed revenues at the Dublin-based firm decreasing by 7.5% from €86.45m to €80m in the 12 months to the end of October 31, 2013.

Mr Burke said yesterday that “last summer’s hot spell didn’t impact our revenues significantly”.

The hot spell took place during a holiday period rather than a booking period, he said.

“However, it is impacting early holiday sales for 2014. Apparently, since we had a good summer last year, most people assume we are bound to have another scorcher this year. They forget we only get a good summer every 7 or 8 years.”

Commenting on the overall performance of Club Travel last year, Mr Burke said: “We are very pleased with the results. Our corporate business net of the Government account performed strongly, and our Budget Travel brand experienced an exceptional increase in online sales.”

Club Travel lost the Government’s travel account to Carson Wagonlit in August 2012.

Mr Burke said that the main factors behind the drop in profit were “strong online competition from abroad has had a negative effect on our leisure margins in both the flight only and holiday sectors”.

In terms of 2014, Mr Burke said: “While we are forecasting a small increase in revenues, however overall profit will decrease.

He said they were quite optimistic they would see an improvement in revenues and profitability in 2015.

The balance sheet for the firm remains very strong with cash increasing by over €2m to €39.59m with accumulated profits totalling €36.88m.

Bank deposit interest on the firm’s cash last year totalled €1.226m.

Numbers employed by the firm increased from 130 to 136 with staff costs increasing marginally to €4.3m.

Mr Burke sits on the board with company founder, Liam Lonergan, and Helen Lonergan.

Emoluments to directors last year including pension contributions totalled €328,549 compared to €317,243 in 2012.

A dividend of €644,200 was paid last year to the firm.