The high temperatures in the Mediterranean during Summer 2023 did little to deter holiday-makers travelling there as an increase in sun holidays helped Club Travel to enjoy record revenues of €194.53 million last year.
Accounts show that pretax profits at Club Travel Holdings Ltd increased by 18 per cent or €1 million from €5.9 million to €6.98 million in the 12 months to the end of October last.
The increase in profits was on the back of revenues surging by 39 per cent from €139.67 million to a record €194.53 million.
“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,” Colman Burke, commercial director at Club Travel, said on Monday.
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Asked if the soaring temperatures in Mediterranean countries last year negatively impact 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 said: “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.
“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,” he said.
In a note with the accounts the directors said that the group had continued to further develop its trading operations which are expected to improve service levels to new and existing customers and the overall financial performance.
The post tax profits of €4.72 million last year further strengthened the group’s balance sheet as shareholder funds increased to €69.6 million.
Cash funds increased from €63.8 million to €69.65 million. The note said that operating profits increased in real terms to €5.03 million as Government Covid-related grants of €1.49 million did not reoccur last year.
The group recorded pretax profits of €6.98 million after receiving net bank interest payments of €1.65 million.
Numbers employed reduced from 190 to 187 last year as staff costs increased from €7.9 million to €8.8 million.
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