eDreams ODIGEO is increasing sales of dynamic packages and flight ancillaries, as well as seeing a higher rate of mobile bookings.
The Barcelona-based, Spanish-listed company, which owns brands such as eDreams, GO Voyages, Opodo, Travellink and metasearch engine Liligo, said revenue margin per non-flight booking rose by 11% year-on-year during the first quarter - April to June 2018 - its 2019 financial year, from .
There was also a 4% year-on-year increase in revenue margin per flight booking, with 37% of these sales now being made via mobile devices - up from a figure of 32% a year ago.
Overall, flight-related ancillary revenue was up 113% year-on-year, while revenue from dynamic packages increased by 96%.
Dana Dunne, CEO of eDreams ODIGEO, said:
“We are pleased to have delivered a first-quarter performance in line with our expectations while continuing to invest in our new revenue model and improve price transparency for our customers.
“We achieved solid growth in revenue margin on the back of steady bookings growth, thanks to an increase in flight ancillaries and dynamic packages, which is a clear sign our revenue diversification strategy is working.”
During its first quarter, eDreams ODIGEO posted a 1% overall increase in bookings with revenue up by 7% to €134.6 million.
Net profit was €5.3 million compared with a loss of €6.9 million during the same quarter last year.
eDreams ODIGEO has admitted that its change of strategy, which includes offering “increased price transparency display” in some countries, will “adversely affect our performance in the short term”.
Dunne adds: “We expect these changes to our revenue model to slow down our financial performance in fiscal year 2019, but greatly improve the service provided to our customers, leading to sustainable profit growth.”
The company is expecting bookings for the 2019 financial year to range from a drop of 4% to flat, compared with 2018, with a revenue margin above €509 million.
During the 2018 financial year running to March 31, eDreams ODIGEO increased revenue margin by 5% to €508.6 million with bookings up by 3% to 11.7 million year-on-year. Profit after tax rose by 88% to €19.7 million.
Last year, just under 80% of the company’s revenue (€405 million) came from flight bookings.
The market has responded positively to today's Q1s. At the time of writing its share price was up more than 6% on the day. giving it a market capitalization of just under €460 million.