The average amount per booking has increased by 12%.
2.5 million passengers have booked their trips and holidays online.
The Logitravel Group, specializing in holiday travel and owner of the online travel agency Logitravel.com, reported a turnover of €514 million in 2014, representing a 23% increase over the previous year. With these figures, the group has once again achieved its goal of continued growth and has solidified its position as a key player in the Spanish tourism sector.
According to Tomeu Bennasar, CEO of Logitravel.com, 'In 2014 we noticed a change in traveler trends and behavior, with a pattern more typical of boom times than years of crisis. The year began with a very positive reception for early summer sales and growth of over 50%, but this trend slowed down in spring and summer, only to pick up again in the fall. There were no last-minute offers in July and August as occupancy levels had already been reached.'
This increase in business has allowed the company to increase its workforce by 110 employees in just one year, representing a growth of 36% and further proof of the strength of the Mallorcan tourism group.
2.5 million passengers in 2014
The growth in revenue has been made possible by the overall increase in passengers experienced by the Group in 2014, where the package and tour lines have experienced the greatest growth with 42% more passengers transported.
In cruises, passenger growth has been 22%, a line already consolidated and with a high level of repetition, but which still continues to surprise year after year by reaching a greater volume of passengers and revenue.
In total, 2.5 million passengers booked their holidays with Logitravel in 2014, representing a 14% increase in passengers over the past year.
The average amount is increasing
A very telling sign of the new landscape emerging in 2014 is the 12% increase in the average booking value. This growth has been experienced across virtually all business lines, allowing for optimism in the lead-up to 2015. The new trend points to booking holidays further in advance, which in turn affects the final price of trips, causing a slight increase.
As an example, we can see in the following graph the evolution of the average price of cruises in the Western Mediterranean departing in August over the last three years.
Key business lines
Growth is the sum of efforts from all of the Group's business lines, the good performance of the more traditional lines, plus product diversification and its optimal market penetration.
Once again, the bulk of revenue comes from holiday packages, compared to individual services. In total, 76% of revenue comes from holiday packages.
- Packages. This is a priority line for the company, which has evolved from the classic flight + hotel. Travelers can organize a completely customized trip by choosing all the variables involved, a growing demand, especially in recent years with the addition of different transportation options. Logitravel offers the option of combining a hotel with a flight, as well as a ferry, train, or rental car. Overall, Packages accounted for 22% of the Group's total revenue in 2014.
- Cruises. Logitravel was the first agency to venture into online cruise sales in 2006 and has since become a leader in the online marketing of this product. Today, cruises remain the company's flagship product, which has successfully adapted to the constantly changing market and environment, offering added value to customers such as usability, product quality, and service. In 2014, the company achieved a high level of customer loyalty, which, combined with the country's economic improvement and an increase in the average cruise spend, enabled a 33% growth in cruise revenue.
- Specializing in the Spanish and Portuguese coast, Logitravel offers more than 10,000 beach hotels with options to suit all tastes and needs. Tomeu Bennasar explains, "It's a classic choice for Spaniards when it comes to enjoying summer holidays or even long weekends and holidays." He adds, "Our clients know that at Logitravel they'll find the hotel they need, with excellent service and optimal conditions, which is why we have such a high rate of repeat business, something we're very proud of.".
Among the most recent lines that have surprised everyone with their good performance in 2014 are Leisure, Circuits, Disney and Ferries.
- Urban leisure and destination activities. In the first quarter of the year, the leisure offerings were launched, including tickets to theme parks, concerts, sporting events, excursions, and more. "It doesn't represent a large portion of the Group's revenue, as the amounts are comparatively low, but we are very pleased with the reception it has received. Now our customers can book not only their transportation and accommodation, but also all the leisure activities they will enjoy at their destination."
- Tours. In 2014, the online agency significantly expanded the number of tours offered, especially long-distance tours, which it is creating with its own product and booking services. "It's a more exclusive type of trip aimed at a different clientele that demands special treatment, both in the product presentation and the tour itself," explains Tomeu Bennasar. In just one year, the line's revenue has grown by 184%.
- Disneyland Paris. This year marked the start of online sales for trips to Disneyland Paris, a highly sought-after destination in Europe. Logitravel offers a well-developed microsite with extensive information about the park and its tourist services, which has resulted in a 134% increase in revenue for this destination in 2014.
- Ferries. Initially launched as a standalone product, they have since been combined with hotels to create tailor-made packages. The result has been a great reception from travelers, especially during the summer season for trips to the islands. Overall, the ferry line's revenue grew by 176% in 2014 compared to 2013. "This enormous flexibility that our customers have when organizing their holidays is what they value most about Logitravel; they can choose a hotel from an extensive database and then add the transfer that best suits them," explains Bennasar.
Internationalization
2014 was a year of international consolidation, working to strengthen our presence in the countries where Logitravel already operates. Simultaneously, towards the end of the year, we took the first steps to open a new market: Mexico.
In total, the online store operates in nine markets: Spain, Portugal, Italy, France, Germany, the UK, Finland, Brazil, and soon, Mexico. The countries that experienced the greatest growth in 2014 were Portugal and Brazil. "After four years with a presence in Brazil, we are now reaping the first rewards. It's a country with significant barriers to entry and a cultural difference that has made establishing the business difficult," commented Tomeu Bennasar. "In more stable markets, such as Portugal and Italy, we have expanded our customer service and marketing teams to meet the growing needs in these countries," he added.
For their part, the UK and Finland, the online company's newest markets, surprised everyone in 2014 with growing activity and a superb adaptation of the business to each market. The CEO of Logitravel specifies, "Finland generated a total of €3 million in revenue in 2014, an excellent figure considering the country's small size and its unique culture, so different from Spain's."
Traveltool
Traveltool, the Logitravel Group's B2B division serving brick-and-mortar travel agencies, is fully established in Spain and Portugal, where it has achieved growth of 40% and 37%, respectively. With 1,200 points of sale in these countries, Traveltool's philosophy is to strengthen its existing service to agencies and continue working with them to offer more products, tools, and services that will help them compete with major vertical groups and online travel agencies (OTAs).
The major development in 2014 was the launch of operations in Italy and France. In Italy, the business model has been very well received, closing the year with a total of 240 agencies and 7 sales representatives—a resounding success for the first nine months of operation. In France, Traveltool's rollout has been more gradual, with 50 agencies joining in the first few months.
In Brazil, the fifth country where Traveltool operates, the entry process is proving slower. In 2015, the division decided to focus its activity in São Paulo, with plans to gradually expand its business to the rest of the country.
2015 Projects
Constant and continuous innovation is one of the Logitravel Group's core principles. With this in mind, 2015 is planned around three main lines of work: a significant destination services project, the reinvention of traditional customer service, and a new market on the horizon.
In 2015, the Logitravel Group will be working on a new traveler support service at their destination. With this project, the company aims to be close to its clients throughout the entire travel process, from the initial inspiration to the moment of the trip itself. Tomeu Bennasar points out, "We want to accompany our clients on their journey so they have a perfect experience. It's an ambitious project, but one we are prepared to undertake, and we know our clients will appreciate it.".
For several years, Logitravel has focused on customer service, extending its customer support hours until 11:30 p.m. Monday through Friday and training its team of agents to achieve optimal service levels. The Group's goal is for every customer to find advice, assistance with bookings, or help managing special requests conveniently from home, via email or phone. In 2015, Logitravel aims to further strengthen this area of the business, which it considers vital for the future of online travel agencies. This improvement will also be implemented in the operational booking system of Traveltool agencies, with the aim of enhancing service efficiency and speed.
And finally, 2015 will be the big year for the launch of Logitravel Mexico. The Managing Director of Logitravel comments, "We know it won't be an easy market, but we have the experience gained in Brazil and we know the country's great potential. We are already preparing all the legal paperwork and two Mexicans are scheduled to start working in the coming months to adapt our business to the country's needs and culture."
