MYTRAVEL SALES TO OFFSET PROFITS STATEMENT

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.