The European online travel company, eDreams Odigeo, has reported a significant increase in profits due to its growing subscription service, Prime.
- In the first quarter, eDreams Odigeo’s earnings before interest and taxes (Ebitda) rose by 23% year-on-year to €36 million.
- The company’s net income experienced a remarkable 145% increase, reaching €2.6 million.
- Prime membership saw a substantial 32% rise, expanding the subscriber base to over 6.2 million.
- CEO Dana Dunne highlighted the potential of the subscription model in reaching untapped markets.
The report from eDreams Odigeo, a leading European online travel agency, indicates a favourable financial trajectory, underpinned by its Prime subscription service. The company’s earnings before interest and taxes (Ebitda) have surged by 23%, climbing to a notable €36 million in the first quarter of the financial year. This marks a period of significant profitability for the company, attributed largely to the successful and evolving Prime membership model.
Additionally, the agency’s net income ascended by a staggering 145%, amounting to €2.6 million. This exceptional growth in net income underscores the effectiveness of the subscription-driven business approach, further solidifying the financial stability and future viability of eDreams Odigeo.
Prime, which has cemented itself as the world’s largest travel subscription service, experienced a robust increase in membership by 32%, bringing the total number of subscribers to over 6.2 million. This substantial expansion reflects the growing appeal and acceptance of the subscription model within the travel industry.
With the current momentum, eDreams Odigeo is poised to meet its strategic targets, aiming for 7.25 million Prime subscribers and a cash Ebitda of at least €180 million by the end of the current fiscal year. Such forward-looking goals underscore the company’s focus on leveraging its subscription service to drive continued growth and profitability.
Dana Dunne, the chief executive, expressed enthusiasm about the trajectory of the business, remarking on its stronger and more predictable nature as a subscription enterprise. He also highlighted the immense market potential that remains untapped, suggesting a vast scope for future expansion and success.
eDreams Odigeo’s performance demonstrates the transformative potential of subscription models in the travel industry, paving the way for sustained growth and profitability.
