EDreams Odigeo hails AI platform as profitability grows

European online travel agency eDreams Odigeo has hailed its AI platform and Prime subscription model as it reported a “strong start” to its fiscal year.

 

It said strength of its Prime subscription model was the “primary driver of growth” in its first quarter, to June 30, as membership saw “significant growth” of 20%, reaching 7.5 million members.

 

“This performance drove strong profitability, which grew 8% year-on-year to €39 million, meeting the target range of €38-€40 million,” said the OTA.

 

“This performance is a direct result of the increasing maturity of the Prime membership base.

 

“As a larger share of members renew their subscriptions beyond the first year, acquisition costs are reduced, which in turn raises profitability and drives a substantial margin expansion.”

 

Dana Dunne, chief executive, said: “At the heart of our success is an unbeatable and unrivalled engine: our proprietary AI platform.

 

“It is this which allows us to delight members with hyper-personalised experiences and deliver industry-first benefits, such as the freedom for our members to cancel flights across hundreds of airlines.

 

“Simply put, there is no better platform or value for travellers on the market today.

 

“Our platform’s superiority is the engine which powers consistent and substantial growth, turning soaring customer satisfaction into powerful business results and significant returns for our shareholders.

 

“With our proven strategy, world-class team and this unique technology, we are perfectly positioned to scale our success and seize the vast opportunities that lie ahead.”

 

Overall revenue grew 8% to €172.6 million, while revenues from Prime members grew by a “notable” 23%.

 

It reported adjusted net income of €23.6 million, up ninefold year-on-year.

 

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