OTA eDreams Odigeo boosts Prime subscriber base by 643,000

European OTA eDreams Odigeo (eDO) attracted 643,000 new subscribers in the financial year to March.

The additions to the firm’s Prime subscription scheme helped drive a 42% year on year rise in adjusted net profits to a record €72.9 million.

At the same time variable costs fell by 11%, reflecting “increasing subscriber maturity”, reducing marketing and customer acquisition costs. 

The subscriber base has now reached 8 million members, with the Prime model the main driver of profitability. 

The OTA noted: “The continuous growth and increasing maturity of the membership base is a result of rising consumer satisfaction and endorses the company’s confidence in delivering on its long-term target of 13 million members by March 2030.”

A new monthly and quarterly payment model “enhances lifetime value and acts as a key enabler for even higher growth rates as the company scales Prime members into new geographies and product areas”.

Chief executive Dana Dunne said: “Our subscription platform fosters strong customer relationships and generates predictable, recurring revenue, which protects us from market volatility and supports sustained growth. 

“Robust cash generation and an optimised capital structure uniquely equip us to expand our product and international footprint while maintaining our commitment to shareholder returns.” 

He added: “Leveraging our decade-long leadership in AI, which is embedded into eDO’s DNA, we are transforming the business into a diversified, global travel platform designed for future growth.

“We have the team, the technology, and the strategy to reach farther and further, and we are excited for the immense opportunities that lie ahead.”