European OTA group eDreams Odigeo delivered a “stellar” performance in the three months to June 30 and is on course to meet or exceed longer term targets for 2025 and beyond
Net income of €4.1 million for the quarter compared with a loss of €13.9 million in the same period last year.
Mobile bookings improved and accounted for 58% of total flight reservations, a record in the history of the company – the parent of eDreams, GO Voyages, Opodo, Travellink and metasearch engine Liligo.
The turnaround was attributed to a shift in the firm’s business model from transactional to subscription-based.
The company’s Prime subscription membership has risen to almost five million, with a target of more than 7.5 million in 2025 together with cash earnings [ebitda] of more than €180 million. The aim is for average revenue per user of about €80.
Chief executive Dana Dunne said: “We have achieved a stellar start to our fiscal year, results that directly reflect the success of our strategic and innovative approach and the dedication of our talented team.
“Our investments and decisions are clearly bearing fruit, putting us in an optimal position to expand further.
“With 2025 only 18 months away, we are now looking beyond our once-seen-as-ambitious 2025 targets, which are now well within reach thanks to the excellent operational and strategic execution of our plans.”
He added: “In 2017, we introduced our Prime subscription programme, setting us apart from traditional travel companies.
“While industries like supermarkets (Costco) or video streaming (Netflix) had successfully embraced subscriptions long ago, the travel industry had not ventured into this territory until we took the lead.
“Today, our results demonstrate our success, with most of our revenues and profits now being derived from this segment.
“We are now unequivocally a subscription company. As a result, we are introducing a new reporting breakdown, aligned with similar subscription businesses, thus enabling our key stakeholders to better understand our progress.
“This performance is deeply rooted in our ever-increasing tech capabilities. As we continue to strengthen our tech powerhouse, notably in the field of AI, we have emerged as a leader not only in the travel sector but also in the broader e-commerce industry, blazing a trail for others to follow.
“As we chart the path forward, we do so with increased confidence in the boundless opportunities that await us”.