Travelzest plc Releases Pre-Close Trading UpdateBy Travelzest, PRNE
Thursday, January 13, 2011
CHELTENHAM, England, January 14, 2011 - Travelzest provides pre-close trading review and update on the group's
restructuring initiatives ahead of its preliminary results for the year
ending 31 October 2010, due for release in late January 2011.
The Board of Travelzest (
announced that it anticipates the underlying trading for the year will be in
line with Board expectations.
The group, both in Canada and the UK, has performed well in difficult
economic markets with an overall 10% increase in departures for summer 2010.
Advance bookings for winter 2010/11 departures are up 15% (compared to
corresponding period in previous year).
The group's operations in Canada continue to build upon its market
leading position with growth in average retail value and margins despite
challenging market conditions. This has been bolstered by the continued
success of the regional network and product expansion, as well as through
further penetration into the dynamic packaging market. These actions continue
to drive growth in passenger numbers and improvements in summer departures.
This reinforces the group's reduction in its winter dependency and its
progress towards a year round offering.
The division gained strong cost and efficiency benefits from the
reorganisation of the operational structure within itravel2000 and The Cruise
Professionals. itravel2000 renewed its partnership with Petro Canada for
loyalty card members to redeem and earn points when they book.
The Cruise Professionals was also again named 'Top producing Agency
Worldwide' for 2010 with Crystal Cruises and for the 11th year in succession
was named in the Conde Nast list of the World's 135 Top Travel Specialists.
The launch of Travelzest's new state of the art customer service centre
in Cheltenham has resulted in the consolidation of five offices from various
locations in the UK into one facility. The new facility is interlinked with
Travelzest's Canadian Operations allowing for advanced call routing and data
network sharing, plus the implementation of a new reservations and inventory
system. This has combined the six legacy systems used and will provide a
simplified and more efficient platform from which merchant products can be
distributed. These measures have created a greatly improved structure for UK
operations which should be both scalable and more efficient to manage.
The UK economic market has presented a challenging environment for UK
Operations. Coupled with the division's restructuring and refocusing
initiatives, the division has continued to experience difficulties in
capturing market share and maintaining margins. With the continued
development of the organisation and launch of new marketing initiatives, the
division is expected to show improved performance.
VFB Holidays, was voted favourite tour operator by 'Which?' members in
the consumer champion's holiday survey results.
Net debt for 31 October 2010 is estimated to be in line with Board
Jonathan Carroll, Travelzest's Chief Executive Officer, commented:
"Following a year of extensive and rapid operational restructuring, we are
thrilled to be building on our extensive database of customers using our
newly updated and efficient systems in order to drive growth. The
restructuring of the operations to create a more productive and efficient
group will provide continued benefits as the group grows and now allows us to
bring together the strength of each operation under a unified team culture
with a common goal.
"The newly integrated and restructured systems ensure that we can now
cross sell our UK and Canadian offerings efficiently to each market, and with
this in mind I am very optimistic that we can enhance shareholder value in
the short to medium term."
Travelzest has travel retail operations in the United Kingdom and Canada
that service consumer bases in both countries as well as the United States of
America. Travelzest's currently has tour operating programs including short
breaks (www.travelzest.com/en/short-breaks) to various countries
including France, holidays in Cuba, (
Italy, Malaysia, Mexico, holidays in Morocco (
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PR contact: Jack Fraser Group Chief Operating Officer & Financial Director Travelzest 2nd Floor Delta Place 27 Bath Road Cheltenham GL53 7TH +44(0)844-335-6623 www.travelzest.com/en/
PR contact: Jack Fraser, Group Chief Operating Officer & Financial Director, Travelzest, 2nd Floor Delta Place, 27 Bath Road, Cheltenham, GL53 7TH, +44(0)844-335-6623
Tags: canada, Cheltenham, England, January 14, Travelzest, United Kingdom