eDreams Odigeo’s shift to a subscription model has significantly boosted profitability.
- The company’s annual profit surged by 44%, a substantial financial turnaround.
- eDreams Odigeo’s Prime membership rose by 34% to over 5.8 million users.
- More than 75% of profits now stem from the Prime subscription scheme.
- The company plans further growth with a target of 7.25 million members soon.
In a notable strategic shift, European online travel agency eDreams Odigeo has embraced a subscription model, resulting in a remarkable 44% increase in adjusted net profits. This represents a stark contrast to the previous year’s net loss of €34.7 million. Such growth is primarily attributed to the rising popularity of its Prime subscription scheme, which has witnessed a 34% increase in members, now surpassing 5.8 million.
The Prime scheme’s contribution to eDreams Odigeo’s profitability is significant, accounting for more than 75% of the company’s overall profits. The company attributes this success to a combination of strong consumer advocacy, rising satisfaction rates, and unique offerings tailored through advanced AI technology. Members benefit from personalised travel plans, exclusive deals, and the convenience of a consolidated global booking platform.
Chief Executive Dana Duane expressed optimism about the company’s strategic direction, asserting eDreams Odigeo’s position as a leading subscription platform within the travel industry. The company asserts its business model is maturing, delivering enhanced customer satisfaction and robust financial outcomes, further buoyed by untapped growth potential in the subscription service market.
Duane emphasised the transformational journey eDreams Odigeo has undertaken over the last few years. The company, which pledged to become the largest travel subscription firm globally, has achieved this landmark with Prime, emerging as one of the fastest-growing subscription platforms worldwide. Despite challenges such as the pandemic and economic uncertainties, the company has maintained steady growth and increased its market reach.
The company’s forward-looking strategy focuses on leveraging its established foundation to drive sustained growth. As eDreams Odigeo progresses into its strategic plan’s final year, it remains confident about further expanding its subscriber base beyond 2025, aiming for a vast, addressable market with significant opportunities for continued growth.
eDreams Odigeo’s subscription model sets a new standard for growth and consumer satisfaction in the travel industry.
