HRG sees revenue dip after rise in online self-booking

Hogg Robinson Group (HRG) 'positive' despite 4% fall in revenue in half-year results due to a rise in customers booking for themselves online.

HRG is experiencing a rise in online self-booking
HRG is experiencing a rise in online self-booking

The travel management company’s half-year results showed that revenue dropped 4% from £162.3m to £155.9m, despite a rise in pre-tax profits, which were up 26% for the six months ending 30 September 2015.

HRG stated the fall in revenue was down to migration from classic to online booking, as well as strong competitor pricing.

The report said: "As part of our cost-saving recommendations, we continue to advocate to our clients a move to self-booking, particularly for the more simple types of itinerary. As a result of this migration, we saw a further increase in online adoption, to a new high of 49% from the previous 46% in the same period last year. 

"It is worth remembering that whilst revenue to HRG may reduce in the short term as a result of this shift, once the cost associated has been re-directed or lost, we expect our margins to increase."

The company also reported that it expected to deliver a full-year performance in line with market expectations.

David Radcliffe, chief executive of HRG, said: "This is a positive first-half performance, which reflects the ongoing work we are undertaking to reshape and realign the business to current and future market conditions.   

"In particular, we are encouraged by our profit growth and the continued reduction of net debt. Fraedom continues to grow and it is pleasing to see the benefits of our proprietary technology continuing to win us business. We look to further accelerate its growth and invest in new technology across the Group. We will continue to develop the business and expect to deliver a full-year performance broadly in line with expectations."

More:

HRG reveals new Paraguay partner

Volkswagen Group extends HRG contract

Integration to top client agenda in 2015, says HRG

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