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mardi, mars 16 2010

Long time no see!

Par Madame Vacances le mardi, mars 16 2010, 19:30

2009 was challenging. 2010 will be probably be the hardest year that Madame Vacances has faced since our creation nearly twenty years ago.

There is downward pressure on the price that people are willing to pay for their holiday, (the internet is now ubiquitous. Consumers research their holiday online, and then search around until they have found the best price for their destination). Add to that, the strength of the Euro, makes France a very expensive option for skiers whose home is not in the euro-zone. This affects over 30% of Madame Vacances’s traditional clientele, and we’re having to market our products very keenly in the non-euro zones, just to keep up.

To fight the pressure on prices, we have invested heavily in our hotels and IT systems. The feedback from customers in our hotels is very encouraging. We’ve also introduced new quality–control programs to ensure our customers come back to us, and not the competition.

Added to pressure on prices, is the hangover of the building-boom from the first part of this century. Borrowing was easy, interest rates were low and property prices inflated. Correspondingly, rents agreed were set too high. Many companies in our sector have found themselves with rents that are simply too high for the revenue generated, and a great many of them have closed their doors in the last 12 months.

Meanwhile, to maintain margins, we are aggressively cutting costs, at head office and on the sites, with all the pain that goes with it. We are being forced to ask our landlords to share the pain. It is a gruelling process of rent-negotiation.

Advance sales for summer look encouraging, but there is tendency for people to book as late as possible for their holiday, which makes accurate forecasting difficult. Our main markets’ economies are still fragile but it would seem that one of the last expenses that people cut is their holiday, and we, at Madame Vacances are, of course, happy to oblige!

It is a time to keep a clear head. All firms are having to watch their costs like never before. The economic slowdown has seen many casualties. Every member of Madame Vacances hard-working staff is fighting to make sure that we are well-placed when the recovery eventually comes…

mercredi, septembre 16 2009

- SkiHeart -

Par Madame Vacances le mercredi, septembre 16 2009, 12:24 - Sites partenaires / partners

At SkiHeart, we find and post deals on skis, snowboards, clothing and gear. Plus, find helpful information on ski resorts, ski clubs, lodging and tourism.

mardi, juin 23 2009

June 2009

Par Madame Vacances le mardi, juin 23 2009, 23:40

State of Business June 2009.

2009 is proving to be an interesting year! Our sales for the winter season were more or less in line with previous years, but profitability has been hit, with steeply rising rents and an increasing head office overhead.

Summer sales have been slow. Two months ago forward summer bookings were down by 20% compared to last year. This prompted an urgent re-appraisal of costs, and it is with great pride that I have seen all of our staff rising to the challenge.

We have asked all of our people to buckle-down, and it is our goal to come out of this recession having made no redundancies. That would be a great testament to the commitment of our people, and ours to them.

In parallel we have had to re-visit the rental agreements that we have with the owners of many the apartments we manage. We appreciate the understanding shown by many owners, but it is with frustration that we have seen others refuse to accept the economic reality. Unfortunately, leases that cannot be renegotiated will have to be terminated, which will hurt owners.

Likewise we salute those suppliers, from the local baker to the national companies, who have revised their tariffs in this difficult market. We won’t forget their effort – just as we forget those who haven’t helped.

We are clawing back the summer business. We are now confident that we will end the summer with respectable occupation levels, but at what price? The story in our sector is of a clientele comfortable booking on the internet and making their purchase very late. It makes sales visibility difficult. Late discounting has become the norm.

Meanwhile, the recession has taken its toll on our competitors. Since 2008 a dozen actors in our market have gone bust. Even the industry leaders are feeling the heat. Pierre et Vacances recently announce a profit-warning to its shareholders. Other big firms will fail. Here at Madame Vacances we know very well the identity of the next one that will fall.

And Madame Vacances? Of the remaining French operators of Residence de Tourism, Madame Vacances is one of the strongest. We have the treasury to survive a few tough seasons of sales - though we’re not planning to use those funds recklessly. We also have a far more experienced manage team than most, drawn exclusively from the Tourism and Service sector. Most importantly, we work harder than our competitors. We stay open when they are closed. We work until we have found solutions. Others walk away from their responsibilities.

Where next? The euro has been at an all time high recently, making France a very expensive place to visit. Subsequently, the proportion of visitors to France from the euro area, as opposed to further afield, is at the highest level in a generation. As for the French economy, it is unlikely to come-out of recession until next year, with unemployment rising until well into 2011. Consumer spending is in retreat. Those companies heavily reliant on a domestic market may find the going tough over the next 3 years.

However, the Euro should weaken, and, coupled with the strengthening of sterling, the UK market should take-up the slack from 2010.

Onwards and upwards. The next few yew years present great risk and opportunity in our sector. Madame Vacances is shaping-up to be one of the winners at the end of it.