Travelsupermarket.com has confirmed what many senior execs in the travel industry have been saying about the credit crunch – weekend and short breaks will be sacrificed rather than the main holiday.
A statement from its parent company, moneysupermarket.com, said: “The core package holiday market continued to experience strong growth.
“However, the credit crisis is manifesting itself with a slowdown in ‘weekend break’ type travel, with both flight and hotel bookings in decline.”
In the July-September 2008 quarter, travelsupermarket revenues were 10% ahead of the same period last year, driven by an increase in visitors.
The unit’s profitability, which is not disclosed, has “increased significantly”, helped by the fact that in Q3 08 it didn’t advertise the brand on TV.
In Q3 07 it spent “in excess of £2 million”.
Simon Nixon, chief executive of the group, said: The strength of our diversified model is now evident. The business is strongly cash generative and our balance sheet remains strong, so we are well placed to withstand the current difficult environment.”
At the end of the quarter it had £71 million in cash.