Hogg Robinson revenue falls as businesses reduce travel spending

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Business travellers are taking more single-day trips and opting for cheaper hotels when they do stay overnight, according to business travel specialist Hogg Robinson, which has reported an 8.5 per cent decline in revenue for the last half of last year.

The travel group, whose client base includes such names as Barclays, Condé Nast and Deutsche Bank, waived it final dividend payment for the year, after its pre-tax profits dropped by 39 per cent, to £15.4 million, for the financial year ended 31 March.

Its revenues increased by six per cent, to £351.3 million, which were levelled by exchange rates. A decrease in corporate travel budgets, however, saw sales declining by 8.5 per cent during the second half of the year, and by 3.7 per cent over the full-year, in constant currency.

Hogg Robinson reported that it increased its client base during the year, but that the number of people travelling has dropped as companies reduce average trip costs.

David Radcliffe, the Hogg Robinson chief executive, said: “People haven’t stopped travelling but they are trying to reduce the amount they spend.”

He added: “With the majority of our revenue from client management and advisory fees, these changes were not as damaging as many might have thought.”

Radcliffe noted that in the current recession, unlike any other economic downturn, employees were assuming the responsibility of helping their companies out by saving money on accommodation costs.

Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.

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