Club Travel enjoys 'sun holiday' boost as revenues surge to record €194m

An additional increase in the sun holidays and cruise markets helped drive revenue increases.

The stifling hot temperatures in the Mediterranean during Summer 2023 did little to deter holidaymakers travelling there as an increase in sun holidays helped Club Travel to enjoy record revenues of €194.53m last year.

New accounts show that pre-tax profits at Club Travel Holdings Ltd increased by 18% or €1m from €5.9m to €6.98m in the 12 months to the end of October last. The increase in profits was on the back of revenues surging by 39% from €139.67m to a record €194.53m.

Director at Club Travel, Colman Burke said: “2023 was an excellent year with an increase in profit in real terms despite a drop in margin, due to the increase in proportion of corporate travel in the overall mix.” 

Asked if the soaring temperatures in Mediterranean countries last year negatively impacted bookings for those locations, Mr Burke said: “We saw an increase to these destinations for peak season, and an increase in our market share of sun holidays.” 

On the main driving factors behind profits and revenues, Mr Burke stated: “The main factor was the return of the corporate travel market and an additional increase in the sun holidays and cruise markets.

“Spain and Portugal remain the most popular destinations with Greece and Turkey continuing to gain market share.” 

Mr Burke said that the Rugby World Cup in France last Autumn “was a great success for the company, however, it would only account for a small percentage of our sales increase in 2023.” 

There was no ‘rain dividend’ for the company from the bad weather experienced in Ireland with Mr Burke confirming that it did not result in last-minute bookings in 2023.

He said: “By the time you know it’s going to be a bad summer it’s too late, with very little available and what was there, was expensive.” 

The directors state that the group has continued to further develop its trading operations during and subsequent to the financial year which are expected to improve service levels to new and existing customers and overall financial performance.

The post-tax profits of €4.72m last year further strengthened the group’s balance sheet as shareholder funds increased to €69.6m.

Cash funds increased from €63.8m to €69.65m. The directors state that operating profits increased in real terms to €5.03m as Government covid-related grants of €1.49m did not re-occur last year.

The group recorded pre-tax profits of €6.98m after receiving net bank interest payments of €1.65m. Numbers employed reduced from 190 to 187 last year as staff costs increased from €7.9m to €8.8m.