eDreams Odigeo strategy begins to pay off

eDreams Odigeo says it continues to make progress against the strategy it identified in June which includes a mobile focus, revenue diversification and customer experience improvements.

Reporting half-year results for the six months to 30 September the online travel agency said it had “delivered a good first half performance” with booking growth of 8% to 5.4 million and a 6% increase in revenue margin to almost Euro 231 million.

Adjusted net income for the half year was Euro 8.4 million, a 62% increase on the same period last year.

Speaking to Tnooz, the OTA’s chief executive Dana Dunne said the company had delivered real growth through increased bookings.

Dunne put the growth down to the combined effect of the strategy saying “it will continue, it’s not over by any stretch.”

“It really is the business because we did an analysis of the business, where the industry is growing and where our strengths are and laid out short-term into medium and long-term goals.”

Commenting on revenue diversification, he said that eDreams is a leader in the OTA space in sales of ancillary services with hopes of extending it to more carriers.

Interesting to note that Amadeus says OTAs are leading the way in merchandising – often bringing in incremental revenue of 10-15%.

Dunne added that the company would continue to look at further ways to integrate the content which currently comes via direct connect or aggregators such as a GDS.

The company has also made progress in mobile claiming one-in-four bookings are now coming from mobile devices.

On specific aspects of the business, eDreams reported revenue margin for the flight business was Euro 183.5 million boosted by a 15% increase in bookings in the second quarter of the year.

The rest of the business (hotels, car hire, dynamic packages) saw a 3% increase in revenue margin.

In October, eDreams announced core brands, eDreams, Opodo and GoVoyages, had been migrated on to its new OneFront technology platform.

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About the Writer :: Linda Fox

Linda worked at tnooz from September 2011 to June 2018 in roles including senior reporter, deputy editor and managing editor.



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