Booking trend boosts Holidaybreak

Travel firm Holidaybreak said it had already secured 94% of its sales target

Travel specialist Holidaybreak has said it was weathering a bleak trading climate despite customers leaving it later to book trips.

The group, which offers educational trips, camping and hotel breaks, said it had already secured 94% of its sales target with key selling weeks ahead.

Holidaybreak said later bookings - particularly in camping - were coming through as it also shrugged off the surprise departure of chief executive Carl Michels.

Mr Michels, who has been with the firm for four years, is stepping down "for personal reasons unconnected with the business".

Holidaybreak said it had seen improving trends in its London hotel breaks division - which runs trips to musicals such as Oliver, Lion King, Sister Act and Dirty Dancing - thanks to lower room rates and train fares.

Divisional sales in the current financial year are down 4%, although this is marginally better than the 5% drop at its last update two months ago.

The firm's education division, which runs outdoor trips and cultural tours under the PGL and NST brands, is 50% booked for the year ahead, Holidaybreak added, although trading remains difficult in the adventure travel market.

John Coleman, who has stepped up to become executive chairman until Mr Michels is replaced, added there has been "no material impact" on the business from swine flu so far.

The firm is also looking to expand the education division further following the completion of a £33.2 million rights issue.

Shares ticked 2% higher. Investec analyst Joe Thomas said: "The trading update shows an improving performance across all parts of the business, which now appears to be stabilising. However the resignation of chief executive Carl Michels is a disappointment."