Sales through Going Places up 3%

MyTravel has announced sales through Going Places stores are up 3% since the start of November despite the package-holiday market being 7% down.

Rising fuel prices have continued to hamper the operator during the winter but it is targeting a margin of 3.5% for 2007. The company said “significant progress” has been made restoring the business and operating profit in all three of its divisions ­ UK; northern Europe and North America.

In a trading statement released by MyTravel Group ahead of its annual general meeting, the travel company said its downturn in overall sales for summer 2006 was 3.5%, half that of the market as a whole.

The performance comes after capacity was cut by 2% and the company’s North American operations reported difficult trading conditions “exacerbated by the effects of Hurricane Wilma”, the statement said.

Improved performance and cost reductions in the UK, where Going Places announced the closure of 110 shops last year, and in northern Europe have helped offset the difficulties in North America. Fuel costs are estimated to have risen by 27%, or £16 million, year on year as of March 6.

The statement said: “We manage the business for margin not market share. The flexibility we have gained through the restructuring and our focus on cost reduction provides a sound foundation for the future.

“We are continuing to make progress with the turnaround in the UK, where we are carefully managing our capacity, ensuring products are in line with changing consumer trends, and focusing on cost control.”