European online travel agency eDreams Odigeo has trimmed its annual loss as it saw a “continued and rapid sales growth, coupled with sharply improved margins” over the past year.
For the year to March 31, it reported a net annual loss of €43.3 million, compared to a loss of €65.9 million in the previous year.
The OTA said it achieved several records during the period, including the highest-ever levels of bookings, mobile bookings, revenues and subscribers.
It had 16.2 million bookings, up by 29% over the previous 2022 high and 42% above pre-Covid levels.
The results statement said a key driver for its success is Prime, the OTA’s travel subscription programme. It added 1.7 million new subscribers, exceeding 4.3 million at the end of the fourth quarter – up 64% year on year.
Dana Dunne, chief executive of eDreams Odigeo, said: “We are delighted to report outstanding results, with yet another year of successful strategic delivery.
“Even with the challenges posed by the market conditions, we continued to outperform the travel industry and significantly improved the profitability of our business, which was mostly driven by our unique subscription platform.
“This year, we are proud to have achieved several historic milestones, including records in bookings, revenues, and mobile sales ever achieved in our 24-year history, all while successfully expanding our subscriber base at a robust pace.”
The OTA is continuing to expand its workforce, which will grow by 50% by 2025 to “further fuel its long-term growth as a subscription business”.
It noted that the higher personnel costs associated with this recruitment drive, coupled with higher variable costs associated with larger trading volumes and higher acquisition costs due to the investment to acquire new Prime members, drove the bottom-line result.
EDreams Odigeo is the parent of online brands such as Opodo, eDreams, Go Voyages, Travellink and Liligo.
It operates in 44 markets, and claims to be the second largest flight retailer globally and the largest in Europe. It offers flights from more than 690 airlines and accommodation at 2.1 million hotels.
More: European OTA sees bookings rise 45% above pre-Covid levels