Holidaybreak, the education, leisure and activity travel group, has reported that demand in its adventure travel division, Explore, decreased by 16 per cent in the six months ending 31 March 2009.

The company has blamed the effects of the recession and the weak pound for the decline in interest, which has contributed towards an operating loss of £10.8m for the first half of the year. PGL, the education holiday division, also revealed losses of £3.8m, which has resulted in Holidaybreak reporting overall losses before exceptional items of £18.1m, compared with losses of £14.9m for the same period in 2008.

The company admitted that it traditionally reported an operating loss in the first half of the year due to seasonal effects of the camping and education business, and added that it plans to cut costs and undertake a restructuring of the business in the future. Carl Michel, Holidaybreak group chief executive, said: "The decline in consumer confidence has reinforced the trend towards later bookings, particularly in the camping division. We have taken and are taking the necessary steps to cut costs and restructure operations, particularly in the adventure travel division.

"Current trading is in line with management expectations. We will remain focused on cash generation and keeping costs under control while developing growth opportunities which we are currently seeing, both for the short and medium term."