eDreams ODIGEO focuses on mobile and packages

eDreams ODIGEO is stepping up its efforts to offer dynamic packages via mobile web and apps as part of its revenue diversification approach, according to its H1 results out this week.

In the strategy update section of the release, it says:

“We also made good progress in our strategy to focus on Dynamic Packages (DP). We have improved our mobile web front in DP, which makes it easier for our customers to navigate and complete bookings, and make the flight + hotel search and booking more accessible to customers coming from meta”.

It has ramped up the A/B testing of its dynamic packaging by 85% in the first half the current financial year, which runs to end-March 18. In the July-Sept quarter just gone, “DP bookings grew at twice the pace of flight bookings….with growth in revenue margin per booking of 17%.”

The first step in growing its mobile-based DP credentials is to crack flight-only mobile bookings – and it appears to be doing this, with mobile accounting for more than one-third (37%) of all flight bookings in the six months to end-Sept. In the same period last year mobile represented 29%.

It also talked the talk in terms of having reduced its marketing cost per booking, and has a repeat booking ratio of 45%.

eDreams acknowledges however that the development costs for mobile “affects performance in the short term but improves our strategic position and long-term attractiveness.”

Nonetheless, at the start of November it increased its short and medium term adjusted EBITDA guidance – it expects this figure to come in at €118 million ($140 million) in the year to end-March 18, which would represent a 10% increase on the previous year. FY 2020 is tipped for a return of between €130 million and €145 million ($155 million – $172 million).

The statement announcing the increased guidance also noted that the business had appointed Morgan Stanley to “oversee a strategic review process”.

The group has four OTA brands – eDreams, GO Voyages, Opodo and Travellink – and the metasearch engine Liligo. Its main points of sale are France, Germany and Italy.

It is listed on the Madrid Stock Exchange. At the time of writing it has a market cap of just over €440 million ($523 million).

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Martin Cowen

About the Writer :: Martin Cowen

Martin Cowen is contributing editor for Tnooz and is based in the UK. Besides reporting and editing, he also oversees our sponsored content initiative and works directly with clients to produce articles and reports.

For the past several years he has worked as a freelance writer, specialising in B2B distribution and technology.

Before freelancing, from 2000-2008, he was launch editor for e-tid.com, the first online-only B2B daily news service for the UK travel sector.

 

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