Annual Report and Accounts 2001
Contents
Chairman's Statement
Chief Executive's Review
Finance Director's Review
Camping Division
Hotel Breaks
Adventure Holidays
Directors' Report
Investor Relations
Directors and Advisors
Corporate Governance
Internal Control
Other Information
Remuneration Committee
Report Share Option Schemes
Report by the Auditors
Consolidated Profit & Loss Account
Balance Sheets
Consolidated Cashflow Statement
Statement of Accounting Policies
Notes to the Accounts
Notice of Annual General Meeting
Holiday Brochure Requests
Hotel Breaks
page 1 - page 2

Hotel Breaks

Hotel Breaks enjoyed an excellent year in 2000 but this performance was surpassed in 2001. Operating profit grew by 25% to £5.5m on sales of £57.8m leaving the overall margin virtually unchanged. Whilst in 2000 market conditions were almost wholly favourable, this was far from the case in 2001 which makes our second largest division’s achievements all the more noteworthy.

 

Acquired 1995 - 30% of 2001 total Group sales

Superbreak the main brand - also Hotel Breaks, Luxury Hotel Collection, Theatrebreak, Airport Hotels and Hotelnet

Breaks in 1400 UK hotels (200 in London)

New 'accommodation only' European programme (350 hotels across Europe and in the USA)

No commitment allocations

Price guarantee to customers

Rail inclusive and theatre breaks available

60% of sales through UK travel agents, balance direct and internet


Ian Mounser of Superbreak receives the CBI "Fit for the Future" Award

Approximately 20% of Hotel Breaks' customers book rail inclusive holidays. We estimate that up to another 30% purchase their rail tickets from another source. The disruption suffered in the wake of the Hatfield and Selby disasters clearly discouraged rail travel and indeed this aspect of our business was noticeably affected. However, despite this and the November 2000 floods affecting some customers' ability or desire to travel, overall demand remained buoyant throughout the autumn and winter months.

London is the principal rail destination. One reason why pre-Christmas bookings held up so well was our success in selling good numbers of Millennium Dome breaks throughout calendar year 2000, in spite of the adverse publicity which the project attracted from the media. A further boost came through the acquisition of Rainbow Holidays in September 2000. Across the year we estimate that sales growth was enhanced by approximately 10% due to the acquisition. Initially we continued to use existing brochure stocks but merged Rainbow into the Superbreak and Hotel Breaks programmes from April 2001.

Whilst the rail problems eased as we moved into spring 2001, the foot and mouth epidemic posed a further threat. Initially, we did see bookings for Devon, the Lakes and other countryside destinations falling away. However, these have never been a major part of our overall mix and it soon became apparent that increased bookings for city, town and seaside breaks would more than compensate. Foot and mouth did undoubtedly affect our fledgling inbound business which comes mainly from Holland, Ireland and the USA.

 

Hotel Breaks
page 1 - page 2