Holidays and Eurozone crisis hit Eurostar business travel
Published: 14:50, 12 July 2012
Updated: 14:53, 12 July 2012
by business editor Trevor Sturgess
Public holidays and the Eurozone crisis hit business travel on Eurostar trains in the first half of the year.
While total passenger numbers and sales edged up, growth was driven by leisure travellers amid a weakening business market.
The international high-speed rail operator between St Pancras, Ebbsfleet, Ashford, Brussels and Paris reported today that it carried 4.8 million passengers - up 2% - as revenues rose 1% to £425m.
Just days after the Public Accounts Committee of MPs said that original forecasts for Eurostar passenger numbers were "wildly optimistic", the company reported a "resilient and robust" performance.
But Eurostar admitted a flat performance in the business travel sector in the first three months of the year was followed by a weakening situation in the quarter ending June 30. It blamed the number of public holidays and financial uncertainty in the Eurozone.
Chief executive Nicolas Petrovic said: "We have delivered a resilient performance in the first half of the year despite the difficult economic climate.
"Leisure bookings have continued to grow and we have seen good take-up for travel to London over the summer period. During the Queen's jubilee we had one of our busiest weekends on record and we are looking forward to welcoming visitors from across Europe to enjoy all the attractions that London has to offer for the Games.
"Whilst leisure sales have held up over the last six months, there is no doubt that corporate clients and business travellers, particularly in the financial services industry, are feeling the squeeze and are cutting back on their travel budgets as they adapt to the economic environment.
"The combination of economic pressures and the London 2012 Games has meant that we are seeing different travel patterns this year. The traditional European summer close-down for business is kicking in earlier as all eyes turn to the Olympic celebrations in London."
As an Olympic sponsor, Eurostar is expecting to bring good numbers of spectators and athletes to the Games, including the French and Belgian Olympic and Paralympic teams.
Eurostar is also staging the Traction one-day summer arts festival on Saturday at Granary Square, Kings Cross, as part of the London 2012 Festival activities.
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