For Logitravel Group, the tourism group that emerged from the online travel agency Logitravel and has grown into a holding company with both B2C and B2B businesses operating globally, 2020 began with strong growth prospects. In 2019, Logitravel Group achieved significant growth in both revenue and EBITDA, reaching €800 million, a 10% increase over the previous year. Divisions such as Smyrooms, the bed bank, and Logitravel.com led the growth and a major international expansion. Strategic markets such as Spain, Portugal, Italy, and France contributed to this growth.
Despite the difficult decisions that have had to be made, Logitravel Group is facing the post-COVID era with great strength and new projects. Six months after the declaration of the State of Emergency in Spain and the closure of borders worldwide, Logitravel Group has secured the necessary cash flow and liquidity for the future and has been gradually bringing its team back since May. As of September 1st, and after a significant effort, 50% of employees are already back at work, and the plan is to continue gradually bringing employees back in the coming months.
In the words of Manny Fontenla Novoa, president of Logitravel Group: “As a tourism industry, we have faced many challenges in the past, but nothing compared to the impact of the coronavirus. Both the severity and duration of this crisis are unprecedented, and unfortunately, we must prepare for the impact it will continue to have in 2021.” He adds, “Our current plans are based on the assumption that the market will not return to 2019 levels until mid-2022. By then, we expect to be well-positioned and, thanks to our digital structure, to gain market share in the main markets where we operate.”
The company's future strategy is based on the consolidation of its two key pillars, the OTA and the bedbank, which, although far from the figures of 2019, are performing very positively.
The Group has taken advantage of the pandemic to restructure another of its key divisions, the B2B channel for traditional travel agencies, in which it is heavily invested in all the markets where it operates. Traveltool e-services plans to develop new tools and products to help agencies through the challenging process of digitizing the tourism business.
As a new development and to strengthen this division, Chema Hoyos joins the team as International Sales Director in collaboration with the Smytravel sales team.
Regarding the expansion of the B2B channel, Tomeu Bennasar, CEO of Logitravel Group, explains: 'We see great opportunities to grow our B2B business in our main source markets. I am delighted that Chema Hoyos is joining Diego Rosales and the Traveltino team. Together with Toni Frau, Director of Traveltool e-services, and Toni Cortés, Director of Smyflights and Head of Transport, we have an experienced team to tackle the challenges facing the traditional travel agency B2B sector.'
For his part, Diego Rosales, head of the Group's Purchasing and Tour Operations area, commented: 'We are all very happy to welcome Chema to our team and we are looking forward to working together. He will undoubtedly bring a wealth of experience to the business.'
Another of Logitravel Group's strengths, especially now, is its fully digital structure and operations. Fontenla Novoa comments, "With the pandemic, we're seeing an acceleration in the digitization process for our customers, who are demanding online products more than ever. Not only tourism products but all types of consumer goods have experienced a growing online demand that's here to stay. We specialize in both technology and product, and we're going to take advantage of this consolidation of online shopping to grow in the market.".
Since the reactivation of tourism, the various divisions of Logitravel Group have provided extensive information on the new normal in travel, communicating all the protocols of hotel chains, airlines, and other suppliers in response to the new situation. They have also offered a selection of 'Logi Travel Safe' products recommended by the company's product and quality team for complying with important preventative measures and offering distinct advantages such as location, facilities, services, and more. Furthermore, Logitravel Group has repositioned its entire product offering, highlighting coastal, domestic, and island destinations over long-haul and cruise options.
