eDreams Odigeo says results for the first quarter of 2019 fiscal year are in line with expectations as it continues with its revenue diversification strategy.
The Spain-based online travel agency says booking for the quarter to June 2018 increased 1% while revenue margin was up 7% to €134.6 million and EBITDA decreased 3% to €26 million.
Chief executive Dana Dunne said an increase in flight ancillaries and dynamic packages had contributed to revenue margin growth.
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The company has been pushing ancillaries and dynamic packaging since last year as part of its revenue diversification strategy to become less reliant on air ticket sales.
He added that results were as expected and that the changes to the company’s revenue model will continue to impact eDreams financial performance in 2019.
The company, which includes eDreams, Opodo and Liligo, says dynamic packages revenue margin increased 96% in the quarter while ancillaries growth was up 113%.
In addition, the company’s ongoing investment in mobile resulted in mobile bookings up 16% and 37% of all flight bookings are now via mobile.
eDreams Odigeo says marketing and pricing strategies helped boost flight bookings with flight revenue margin up 5% to €107.2 million for the first quarter of 2018. The results include a 4% increase in revenue margin per booking attributed to flight ancillaries.
Non-flight bookings for the company increased 6% which is attributed to the diversification strategy. Non-flight revenue margin increased 18% for the quarter through the growth in bookings.