Taking advance of the presentation of the annual results for the year 2012, the online travel agency Travelgenio also reflects on the current industry and on the airlines companies.
Taking advance of the presentation of the annual results for the year 2012, the online travel agency Travelgenio also reflects on the current industry and on the airlines companies. The outlook for airlines has changed a lot since the crisis became a reality and also affected their results.
According to Mariano Pelizzari, CEO and co-founder of Travelgenio, "it is curious how the final positioning of low cost airlines in short and medium hault has consolidated or even strengthened against big companies. We see it clear if we look Travelgenio's reservations".
With the fall of Spanair and Maley in 2012, Air France - KLM or AerolÃneas Argentinas with negative numbers or even Iberia with its ERE, it seems that big companies are not at their best.
It is true that during these years everything is guided to mergers and the creation of strong partnerships within the framework of the global ones like One World, Star Alliance or Skyteam (American Airlines with US Airways, Iberia with British Airways, Air France with KLM, Lufthansa with Austrian Airlines or LAN with TAM are clear examples). This way they can decrease their costs and increase the capability for offering more low cost destinations under the same brand.
However, against these traditional companies, the low cost airlines have settled their market. So much so that, during last year, instead of matching the big airlines in their losses, European low cost airlines have grown about a 7%.
Something similar is happening with online travel agencies. In the Travelgenio annual results it is clearly shown the tendency of consolidation and growth. Against gross sales made in 2012 of 90MM, this year the online travel agency expects to achieve gross billing results of 150MM.
Its growth is demonstrated in the annual results with data like the staff one. Just in jobs, Travelgenio has grown about a 111,11%, giving clear signs of the expansion of the bussines model is being carried out.
Noteworthy was the number of reserves, that have doubled in only one year, as reflected by the company results published.
Finally, during 2012 Travelgenio have had presence in three countries (Spain, UK and France) but currently it has added two more to its portfolio: Germany and Portugal. Its expectation for 2013 is to arrive also to Italy and the Netherlands.