On-line travel and entertainment retailer Lastminute.com boosted its second-quarter turnover from hotel bookings by 30.4%, despite an approximate 30% fall in average room rates over the period.
"We are having to work that much harder to generate the same level of income," said chief financial officer David Howell, who added that the group was now selling an average of 2,000 bednights a day, especially in London and Paris.
The company's accounting period runs from October to September, and in the quarter to 31 March, Lastminute.com generated £10.3m in turnover from hotel bookings, up from £7.9m in 2002. Of these, 98% involved short-haul trips.
Average room rates, primarily in London, slumped from £95 in February to £65 in April. First-half turnover from hotels climbed by 29.7% from £14.8m to £19.2m. Hotels represent about 11% of total company turnover.
A Breakbuilders package, launched in November to offer hotel rooms and flights together, has yielded £5m in sales. In March, Lastminute.com offered city breaks at its lowest prices in a joint promotion with BA and Hilton, Le M‚ridien, Radisson SAS, Sol Meli and Swiss“tel, which were, said Howell, "struggling at the time".
During the second quarter, 25,000 people dined out through Lastminute.com and 10,000 take-away meals were delivered.
Total group turnover for the half-year grew from £11.5m to £33m, while pre-tax losses deepened from £19.8m to £26.2m.