Client revenue for Hogg Robinson Group rose 6 percent
between April 1 and July 26, the United Kingdom-based global travel management
company announced today. In an interim management statement, HRG said it had "performed
very well" during the period, and the increased revenue combined with
lower operating costs to produce "a strong result for the quarter."
The statement did not specify this result, but it did say
that client travel spending in the period was up 19 percent at constant
currency. The disparity with the much lower increase in client revenue, which
is based on flat fees, suggests that total volume is up considerably more than
transaction numbers and that average ticket price therefore has increased
substantially from last year.
Meanwhile, Carlson Wagonlit Travel is expected to report on
its trading globally for the first half of 2011 later this week.
The HRG statement noted that: "While we have seen some
early evidence from selected clients of a return to premium travel, the
majority continue to seek help from us in tightly controlling their travel
costs." Given that HRG considers a return to premium cabins as only a
partial trend, there are two other likely reasons for a growth in average
ticket price. One is that airline reports have suggested a resurgence
especially in long-haul travel, and the other is that fares appear to be
hardening.
HRG said the outlook for the company is promising. "Despite
the limited visibility that is inherent for corporate travel management, at
this early point in our financial year our confidence is increasing," the
statement said. "We expect travel activity amongst our existing clients to
continue to increase in line with macroeconomic conditions."
The company added that it has funding at attractive rates
until September 2011, but renegotiation after that date "is likely to
result in an increase in the cost of funds."