26th February 2025: Here are some of the stories that caught our attention over the week with some of our takeaways.
OTA giant eDreams sees quarterly subscriber numbers rise 26%: Travolution reports that European OTA eDreams Odigeo saw profits rise 40% in the first nine months of 2024 on the back of increased subscriptions. And that the company reported a 26% rise in subscribers to its Prime membership scheme to more than 7 million in the third quarter ending in December last year.
The results demonstrate remarkable success for eDreams’ unique subscription-based approach in the travel space. A few key takeaways
- Strong subscription growth: A 26% year-over-year increase in Prime membership (reaching 7M+ subscribers) validates their pivot to a paid subscription model in an industry that has only traditionally seen unpaid rewards membership programmes.
- Exceptional profit growth: 40% increase in 9-month EBITDA and a 70% jump in Q3 profits reflect substantial margin improvement, likely from the predictable, recurring revenue streams subscriptions provide.
- Meeting strategic targets: The company is on track to achieve its ambitious 3.5-year targets ahead of schedule, suggesting excellent execution and planning capabilities.
- Forward-looking guidance: The new 2026 targets (1M new Prime members, €215-220M earnings) show confidence in continued growth and the scalability of their business model.
On the flip side, some questions that could validate success and not covered in the article include:
- The classic question on subscription quality: Not sure what the churn rates or subscriber lifetime value are for the model. Are these 7M+ subscribers actively engaged or just initial sign-ups?
- Marketing costs: No disclosure about customer acquisition costs or whether the subscription growth is sustainable without increasing marketing spend.
Whatever said and done, it’s fascinating to see an OTA successfully implementing a paid subscription model on scale in travel distribution. And it challenges the traditional transactional discount driven loyalty/rewards programme approach that has dominated our industry for decades.
PS: In related news, Travolution reported on Tuesday that “eDreams ODIGEO and PayPal join forces to expand Prime travel subscription benefits”. The move will benefit users across Europe.
The Distribution Landscape is Evolving as Hotels Seek More Control of Inventory, Margins and Guest Relationships: Brian Reeves (founder of Avvio booking engine) makes some really interesting points writing in Hotel Technology News introducing his new initiative. He says that “one of the key drivers behind intermediaries’ dominance in the travel space is the need for centralised search – a single, convenient place for travellers to compare hotel properties using rich datasets. While hotels prefer bookings via their direct brand channels, they have struggled to attract end consumers who prioritise choice”
Reeves suggests that to succeed in this evolving landscape, hotels must focus on developing customer-centric approaches, optimising for mobile (which now accounts for 68% of online traffic), leveraging AI for personalisation and pricing, and participating in industry-wide initiatives like the roomangel Foundation’s centralised hotel search platform.
Can a revolution fix the travel management world?: In an opinion article in Phocuswright, Timothy O’Neill Dunne argues that ” the world of travel management companies (TMCs) is broken. Not in a subtle way where a bit of tweaking might solve the issues, but in a fundamental, structural kind of way, which questions why they still exist. ”
He says that “the reality is that many TMCs are no longer fit for purpose. They are drowning in data they cannot use, fighting archaic processes that no longer serve customers and stuck in a business model optimised more for survival than service delivery. And, much of this is by design.”
Our takeaways:
- The article identifies fundamental structural problems in the TMC industry, highlighting how they’ve become inefficient middlemen that add complexity rather than streamlining travel management.
- It also accurately identifies the data paradox – TMCs have access to vast amounts of data but fail to leverage it effectively, continuing to rely on outdated systems and manual processes. Is this unique just to TMC’s though?
- The call for revolutionary change rather than incremental evolution is compelling, with specific suggestions like API-driven platforms, AI-powered workflow engines, and real-time expense integration.
- However many of the new age TMC’s like Navan and Travelperk have put a lot of these into play already. Can’t help but feel that the article could use some concrete examples of TMCs that are successfully innovating or case studies of companies that have implemented the revolutionary changes it advocates for.
Aviation Infographics of the Month February 2025: Fascinating insights from OAG, a leading data platform for the travel industry. Did you know that 4 of the five busiest flight sectors worldwide were in Asia Pacific? It also links through to an Innovation radar section where they introduce four new innovations that have emerged.
- Innovation #1: AI-Powered Travel Booking with OpenAI’s “Operator”
- Innovation #2: Delta’s AI-Powered Digital Concierge
- Innovation #3: Air India Introduces Exclusive AI-Powered Voice Booking
- Extra Innovation: Expedia Introduces New Flight Deals Feed
British Airways Holidays reveals travel trends for 2025: British Airways Holidays has unveiled its 2025 Travel Trends Report, revealing how social media is fuelling culinary tourism, the burning desire for literary escapism and the destinations its customers want to travel to this year.
A few trends to call out:
Taste Hunting: 41% of UK holidaymakers are inspired by social media to try specific restaurants or food items abroad, with this culinary tourism trend spanning across generations (even 20% of travellers over 55 report being influenced by social media food content).
Paperback-Packers: A resurgence in reading while traveling, with 90% of UK adults reading more on holiday and 56% of leisure readers purchasing books at airports, highlighting the enduring appeal of physical books as part of the travel experience.
All-Inclusive Revival: Traditional all-inclusive holidays are making a comeback, particularly among younger generations seeking stress-free vacations with predetermined costs, with 42% of customers stating they “only want to eat, drink and lie in the sun.”
Trip Collectives: 71% of adults planning 2025 holidays are looking to coordinate their travel dates with friends or family, showing a strong preference for shared travel experiences.
Trivial Pursuits: A significant rise in travellers booking accommodations specifically for activities, experiences, or sports facilities, with 70% wanting to “learn something new” on holiday and a notable generational divide (71% of 18-24 year-olds prioritising holidays incorporating their hobbies compared to 31% of those over 55).