Spanish online booking group eDreams Odigeo has recovered from the travel industry’s Covid-induced crisis faster than most airlines due to its subscription model which it hopes to expand further, CEO Dana Dunne said on Wednesday.
After the Madrid-listed company had posted a lower quarterly loss than last year, he said that it had exceeded pre-pandemic levels in the past three months. He also stated that August saw a 27% increase compared to the previous year.
According to Eurocontrol data, airlines are now operating at 71% of their traffic levels two years ago.
“That bodes well for us and we do know we have been taking market share, that is really bright for the future,” Dunne told Reuters, attributing the recovery partly to its strategy to sign up subscribers, who pay a fee of around $65 a year to have access to better deals.
The company had 1.5 million subscribers at the end of August, up from 1 million three months earlier, and expects to reach 2 million in the first half of 2022, a year earlier than planned, he said.
While subscriptions are common in other industries, such as music, television and telecoms, eDreams is a pioneer in developing it for the travel industry.
Industry is still struggling to overcome the effects of the restrictions placed around the globe to stop the spread of coronavirus pandemic. Many of these are still in effect.
From $18.5 million a previous year, the company’s loss without interest, taxes and depreciation fell to $5 million in its first quarter. This was due to a revenue margin of more than 68 million euro, which is up from $20.1 million.
After the announcement of results, its shares rose by 2.7 percent.
Reporting by Inti Lauro, Editing by Andrei Khalip & Mike Harrison
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Publiated at Thu, 2 Sep 2021 09:33:59 +0000