MYTRAVEL is
expected to try to offset any poor financial results this week with news it is
on course to exceed its target of an extra 300,000 bookings for next summer by
Christmas.
Analysts predict
the group could report pre-tax profits as low as £30 million and are waiting
for any crucial developments on the renewal of its £250 million credit
facility, due in March.
Airtours is
already thought to have taken 800,000 bookings for summer 2003 compared with
450,000 achieved by this time last year, suggesting it has already exceeded its
target of 300,000 extra bookings by 50,000.
Based on these
figures it needs to secure a further 150,000-200,000 sales by April 1 to
achieve its target of half a million holidays left to sell in the lates market
instead of the one million it had this year.
While it is
understood the majority of nil deposits due on November 15 have been paid,
there are further deadlines of December 3 for remaining nil deposits and
February 3 for low deposits. The latest offer, in place since November 8,
involves paying £25 at the time of booking and a further £25 by February 3.
MyTravel
previously claimed it would not offer nil deposits after Christmas so it could
put any cancelled holidays back on sale in the peak selling period and minimise
any risk. But other longer term campaigns, such as low deposits, were not ruled
out.
A source claimed
cancellations – which on average run at 5%-7% for nil deposit offers – had
failed to materialise. The source said: “Deposits have been collected in line
with the company’s expectations and there is no evidence of cancellations.”
MyTravel is
believed to have an aggressive post-Christmas campaign planned to meet its
targets. But this is unlikely to comprise national TV advertisements like those
of Ricky Tomlinson last year. Instead it is thought regional television
campaigns will target areas such as the northwest where Airtours is
traditionally strong.