Online travel business CNG Travel Group has warned that its earnings for 2004 will be below market expectations. The company said this was because the stepped up the roll-out of its Travel Lodging Connector system towards the end of 2004.
CNG said that the full year revenue mix is expected to be somewhat different from that originally forecast and Tzell, its full service corporate travel agency, continues to perform ahead of expectations at the time of the company's flotation in May.
However, the company added that through the increased rollout of TLC, merchant bookings should gain significant momentum in the coming months and it remains confident that it will meet expectations for 2005.
'We are disappointed that in the face of a changed market environment, conversion rates at high margin hotel bookings couldn't be made up in time for the year ended 2004,' commented CNG's chief executive Finbarr Power.
'However, we are very pleased with the market acceptance of TLC and the response from travel agents and hotels alike. We fully expect this momentum to continue as product enhancements are added in the course of the New Year,' he added.
CNG said that global economic conditions improved during the second half of 2004, and led to an increase in hotel occupancy and subsequently a decrease in hotel margins for intermediaries.
Shares in the company closed up 3.6% at just under 80p on London's AIM market.
