HRG revenue up by 6% in Q1 - CWT to report this week

HRG has reported a 6% rise in revenue for the first quarter of 2010 compared with the same period last year.

The UK-based travel management company said in an interim management statement that when "coupled with lower operating costs, this has produced a strong result for the quarter."

HRG which held its AGM today (July 27) said that trading conditions had "generally improved" since its last statement in May with air travel increasing and hotel occupancy also rising.

The TMCTravel Management Company: An agency which manages business travel for a company. said that client spending for the quarter was up by 19% compared with Q1 in 2009.

It said there was also "some early evidence from selected clients of a return to premium travel" although the majority continue to seek help from us in tightly controlling their travel costs.

HRG said its client retention rate remained "high" the Group expecting it will "increasingly benefit as our existing clients' staff travel more frequently."

HRG said it had also won new clients and extended its relationship with some existing clients which offered "significant opportunities" to grow its business worldwide.

The statement said: "The financial year has started well.

"Despite the limited visibility that is inherent for corporate travel management, at this early point in our financial year our confidence is increasing.

"We expect travel activity amongst our existing clients to continue to increase in line with macroeconomic conditions.

"We will see additional benefit from new clients that have yet to trade with HRG."

Meanwhile, Carlson Wagonlit Travel, one of the largest TMCs in the world, is due to report its figures for the first half of 2010 later this week.

The TMC was earlier this month named by the UK Home Office as its "Overall Supplier of the Year."

During the year, CWT has cut the department's air ticket prices by 15%, hotel rates by 7% and rail fares by 32%.

But the TMC is likely to see business with UK government fall if the coalition goes ahead with signalled cuts of between 25%-40% in public spending later this year.

www.carlsonwagonlit.com   www.homeoffice.gov.uk

www.hrgworldwide.com