The Mediterranean’s hot summer in 2023 did not discourage sun-seeking vacationers, boosting Club Travel’s revenues to a historic high of €194.53 million the same year. Club Travel Holdings Ltd’s financial statements reveal an increase of 18% or €1 million in pretax profits, rising from €5.9 million to €6.98 million over the course of a year, concluding in October 2023.
Club Travel’s surge in profits happened concurrently with a substantial revenue leap of 39% from €139.67 million to an unprecedented €194.53 million. Despite a margin decline, “2023 was an incredibly profitable year, marked by a real-term profit growth largely driven by increased Corporate Travel,” states Colman Burke, Club Travel’s commercial director.
Responding to whether the high heat in the Mediterranean countries last year deterred travelers, Mr Burke stated, “We witnessed a hike in bookings to these destinations during peak season and expanded our market share in sun holidays.”
Mr Burke pointed out, “The revival of the Corporate travel market and an additional surge in sun and cruise holidays were the primary drivers behind the revenue and profit increase. Spain and Portugal remain the top favourites, with Greece and Turkey steadily increasing their market share.”
He added that the Rugby World Cup in France the previous autumn “generated considerable success for us, though it was a minor contributor to our 2023 sales hike”.
There was no benefit obtained due to the poor weather in Ireland, as per Mr Burke’s comments, asserting it had no effect on last-minute bookings in 2023. “By the time we realized it was going to be a poor summer, it was too late. Limited availability led to higher prices,” he informed.
In their statement included with the financial reports, the board noted an ongoing development of the group’s trading ventures. This growth is projected to bolster service to new and existing clients, and enhance general financial performance. The group’s balance sheet witnessed an improvement following a recorded post-tax profit of €4.72 million, with shareholder capital rising to €69.6 million. Cash reserves witnessed an upturn, growing from €63.8 million to €69.65 million. Operating profits were noted to have scaled up in practical terms to €5.03 million, due to last year’s non-recurrence of government grants worth €1.49 million associated with Covid. Pretax profits were tallied at €6.98 million after receipt of net banking interest payments amounting to €1.65 million. The group’s employment numbers saw a minor dip, dropping from 190 to 187, even as staff expenses jumped from €7.9 million to €8.8 million in the last year.