Eurostar Looking to Bounce Back After Fall of Sales During Olympics
By Community | October 21, 2012
Eurostar is blaming a travel dip during the run-up to the Olympics and the weak Euro for a 5 per cent fall in sales revenue during the third quarter of 2012 but the company said bookings have ‘bounced back’ since the Games and that it intends to capitalise on the ‘post-Olympic glow’.
The company is also reporting that a £700 million investment in new, faster trains and a refurbishment of the existing fleet is on schedule for completion in 2015.
Eurostar said its trading results, released last week, amounted to a ‘solid performance’. Total passengers for the year so far are 7.4 million, compared with 7.3 million during the same period in 2011.
Passenger numbers were up 4 per cent during the Olympics, compared with 2011, but the number of leisure travellers coming from the continent to London in July was lower than last year. The business market was also hit, because companies advised their employees to steer clear of the capital in the last few weeks before the Games began. These factors, combined with the weakening Euro, meant that quarterly revenue was £188 million compared with £197 million in 2011.
Total sales revenue for the year so far is £612 million compared with £619 million in the same period in 2011, but chief executive Nicolas Petrovic is shrugging off the gap. He said: “We have had an inspiring and rewarding summer bringing athletes and spectators from around the world to the Olympic Games. Whilst many corporate clients and business customers decided to steer clear of London during the Games, we nonetheless delivered a solid performance.
“Looking ahead to the end of the year, the outlook is strong. Bookings have bounced back and we are now seeing a return to more typical travel patterns. With the tremendous boost that London has experienced over the summer we are looking forward to capitalising on the city’s post-Olympic glow.”