Hogg Robinson revenues drop as business travellers spend less

 
City A.M. Reporter
BUSINESS travel management company Hogg Robinson said yesterday the group had continued to trade in line with expectations since October last year, as revenues for the four months to the end of January fell by seven per cent.

The firm, which plans trips for corporate clients, has been hit by businesses cutting back on travel spending. Transaction volumes were down by two per cent, while the amount that clients spent per transaction fell by three per cent.

Analysts said they hope Hogg Robinson’s push into online services could help drive improvements at the firm.

“Increasing adoption by clients of Hogg Robinson’s on-line travel management tools, and the growing level of software sales will drive medium-term margin improvement,” said Julian Cater at Canaccord Genuity.

“Whilst the market backdrop remains uncertain, Hogg Robinson continues to make progress as clients look to the group for support in helping them to achieve best value from their travel budgets,” chief executive David Radcliffe said yesterday.