Corporate travel specialist Hogg Robinson has upped its profits guidance after it emerged unscathed from snow-hit December and enjoyed a bounce back in business trips.
The Basingstoke-based firm, which provides travel services to clients worldwide including the UK’s Ministry of Defence and Foreign Office, said travel bookings surged 15% in the four months to January.
Hogg said Arctic conditions in December had no financial impact on the business as travel bookings increased in all its regions, with the highest growth in Asia Pacific.
The company said the severe weather presented opportunities to provide travellers with alternative travel arrangements.
Hogg now expects underlying pre-tax profits to be slightly ahead of market forecasts after reporting a 13% increase in revenue in the four months to January. Shares in the firm lifted 7% on the earnings cheer.
The group had to tighten its belt amid the recession as it bore down on businesses and hit corporate travel. But the company experienced a turnaround in the market and tripled its pre-tax profits to £13.3 million in the first half of its current financial year.
Hogg said the key markets in which it operates will continue to grow and it expects travel activity to increase as the global economic recovery continues.
David Radcliffe, chief executive of Hogg, said: “I am pleased to report that the encouraging revenue momentum that we saw through the first half of the year has continued.
“During a period that included some exceptionally difficult weather conditions, Hogg has been able to further demonstrate its value to clients as we work to help them make alternative travel arrangements.”
Analysts at the Centre for Economics and Business Research said on Tuesday that recent international studies – including data received from Hogg – showed improving hotel room rates, which suggested the industry was experiencing a strong recovery.
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