Helloworld expects ‘rapid improvement’ as travel surges

Citing the resumption of cruises and reopening of borders, the company expects travellers to spend more on holidays.

The Kokomo private hotel in Fiji. Helloworld says the resumption of cruising is boosting travel demand to the Pacifici nation. Photo: Maria Louw

Helloworld says it expects a “rapid improvement” in revenues after the lifting of Covid-19 restrictions, with the group posting a $1.9m loss for the first three months of the year.

The travel agency said revenues rose 52 per cent compared to the same period in the last financial year, and transaction values rose to $419m – up 60 per cent – despite the disruption from the latest Covid-19 outbreaks in January. The company said it lost less than $500,000 in February and March.

Helloworld shares rose 2.26 per cent, or 6c, to close at $2.72 on Monday.

Citing the resumption of cruises, the reopening of borders in Australia and Fiji and a relaxing of restrictions in New Zealand, Helloworld expects travellers will have the confidence to commit to higher average spends on their holidays.

Although still registering losses across all three markets in Australia, New Zealand and Fiji, the company saw revenue growth across the wholesale, retail and corporate businesses.

“Based on retail, wholesale and inbound booking intakes across the first three months of 2022 we expect a rapid improvement in revenues across the coming months,” the company told investors on Monday. However, Helloworld has also lost a number of its franchisees – it now has 2070 members in its network, down from 2396 this time last year.