The demand to travel has awakened explosively after more than two years of the pandemic and has finally given a breath of fresh air to the battered accounts of tourist companies. This is the case of the online travel agency eDreams, which has improved its numbers in the last fiscal year -closed in March 2022-, despite the fact that it was still marked by mobility restrictions.
The company founded in Barcelona has gone through a turbulent financial stage. In 2019, before the covid crisis, it lost 40.5 million euros, and the month after presenting those results – April 2020 – it announced an ERTE for its entire workforce due to the impact of the pandemic. The hole in the following year was even greater due to the stoppage in flights: 124 million. It was followed by a rescue request to SEPI for 33 million and a capital increase of 75 million that punished it on the stock market.
The situation has changed, Dana Dunne, CEO, and David Elizaga, CFO, stressed yesterday from the Catalan capital. Revenue, counting subscriptions, has grown by 248% compared to the last year, to 424 million euros, and losses have dropped to 65.9 million euros. The highest growth has occurred in the first three months of this year, despite omicron, inflation and the war in Ukraine. And the figures in April and May point to optimism, they added: reserves in March have grown 34% over 2019; those of April, 52%, and those of May, 58%. Throughout the year, travel bookings have broken records, with 12.5 million. Flights are the best-selling service, but the majority of revenue (73%) comes from associated services, such as hotels, car rental or insurance. The Prime subscriber program, which offers discounts for a fixed fee, has tripled its membership since last year to 2.9 million in May. This service, explained Dunne, is active in nine of the 42 markets in which eDreams operates, with France being its main fishing ground for clients. The company will gradually extend this subscription model – it is the only online travel company with this system – to more markets. By 2025 they aim to reach 7.25 million subscriptions and return to profitability.
This improvement in business has led them to give up the rescue request to SEPI and prepare 500 contracts in two years – now they have a workforce of a thousand employees. The market reacted positively to these announcements yesterday and rewarded the company with an advance of 13.5% on the stock market.
Tourist demand is currently accompanying these growth plans, despite inflation and the invasion of Ukraine. Airline tickets, although prices have risen, are still 14% cheaper than in 2019, and classic tourist destinations are making a comeback. Two Spaniards stand out in the top three: Palma and Barcelona, only behind Paris. Spain is, they said, the country that brings together the most demand among its clients from all over the world. And the hotels in Barcelona, they pointed out, are full again.
