EDreams Odigeo sights on diversification, plays down Lufthansa GDS fee impact

EDreams Odigeo sights on diversification, plays down Lufthansa GDS fee impact

The boss of eDreams Odigeo has said the company will continue to focus on product differentiation despite mobile performing particularly well of late.

The European OTA announced this week that mobile downloads increased by 73% – or 4.9 million – in the three months to June 30, with a 38% rise in mobile bookings over the same period last year.

Chief executive Dana Dunne also said there has been a 29% increase in year-on-year share of mobile bookings, from 15% in June 2014 to 20% in June 2015.

Overall bookings increased by 4% up to 2.6 million, accompanied by a 2% increase in revenue margin per booking.

“This is a great set of results,” said Dunne. “We are seeing growth in many aspects of our business, not just in one area.

“We have been investing in the consumer proposition, products, features and functionalities – mobile is just one aspect of that, but it has grown tremendously.

“Over the last three or four months we have made many updates to the mobile app, and the latest features have been really well received. Some are unique to us.”

Asked whether he thought Lufthansa’s controversial plans to introduce a €16 GDS fee from next Tuesday would have a significant impact on OTA’s, Dunne said: 

“They haven’t actually come into effect yet, so there is a lot of uncertainty around what the possible effects might be. It is difficult to predict an impact.

“For us there are two points to make here. Firstly, we have many ways in which to get airlines’ content. Secondly, we offer well over 400 airlines’ content – potentially having the largest number of carriers.

“As a result of that, some people come to us thinking they want to book through Lufthansa but change their decision when they come to eDreams.” 

EDreams Odigeo has introduced new search and flight notification functionalities, the OTA said.

“We are definitely investing in mobile, but that is not to say we are not investing in other areas at the same time,” continued Dunne.

He cited a strong performance of all business areas, particularly non-flight, together with continued growth outside Europe and an increase in revenue margin per booking.

Asked whether an increase in mobile booking was positive for the company’s bottom line, Dunne said: “The more you provide a positive and unique customer experience, the more repeat business you will get.

“This is a multi-phase plan, one of the core pillars of which is customer experience.

“We have done a lot over the past quarter, and will be doing more over the next three to six months. Both mobile and non-mobile will be part of the focus.”

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