The UK hotel breaks unit of Holidaybreak has seen a recent decline in sales larger due to the high price of fuel and to the dearth of hit shows in London’s West End.

In a trading update, the European holiday specialist group reported that hotel break sales for the year 2007-08 increased by five per cent, but after Superbreak in May slowed significantly.

According to the group’s statistics, for 2008-09 a fall in sales volume of around 11 per cent is being seen, which the company feels reflects a weakened demand in London where rates for leisure accommodation have not been reduced and there are fewer exhibitions and West End shows as compared with last year.

Due to the collapse of XL Leisure, Holidaybreak’s RegalDive has had to cope with unexpected costs of £300,000.

Overall sales in the group’s adventure travel division are up by around three per cent, but profit margins have been negatively impacted by economic realities, including the high cost of fuel.

For the coming year, the division anticipates sales growth at around five per cent. The Explore brand’s margins from January of 2009 are likely to be lower because of required local payments and high fuel surcharges imposed by airlines, that are included in the selling prices, a company spokesman said.

In the camping division, there has been a turnaround, with capacity cut by five per cent, but sales up by one per cent. Next year’s bookings are already ahead of projections.

www.holidaybreak.co.uk