“Novaturas”, which also includes the Latvian company “Novatours”, generated revenues of 61.1 million euros in the third quarter of 2024, which is 3.6% less than in the corresponding period of 2023.
The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was negative at 2.6 million euros, while the net loss was 2.9 million euros. However, the negative quarterly results were mitigated by a profitable September.
“In the third quarter, we still felt the negative impact of the above-mentioned reasons, namely the surplus of trips and the fierce price competition in the market, especially for trips to Turkey and the Greek islands. In order to ensure customer satisfaction and maintain their trust even in overproduction conditions, we have carried out a fairly moderate optimization. In addition, the opportunities to optimize the travel program were also limited due to our relationships with airlines. However, with our wide range of destinations, we were able to narrow the loss for the quarter and turn a profit in September. Taking into account the dynamics of the tourism market this year, we evaluate it positively,” says Kristijons Kaikaris, head of the “Novaturas” group.
In the third quarter, “Novaturas” served 79.1 thousand customers within the entire group. For comparison, in the corresponding quarter of last year, the company served 85.7 thousand customers. The change is mainly due to a decrease in sales to Turkey (-11.2% across the group) due to the significant supply in the market this season. However, the range of available destinations made it possible to at least partially diversify the company’s overall offer. The strongest increase in the number of customers served in the third quarter was in the Spanish resorts (+137% group-wide), driven by the expansion of the company’s offer in Malaga and the renewal of leisure trips to Mallorca, as well as the growing popularity of the Costa Brava and Costa Dorada resorts.
The Latvian company “Novatours” served 15.2 thousand customers in the third quarter of 2004 (last year at the same time there were 14 thousand).
In general, in the period from January to September of this year, the company served 191.8 thousand travelers (-8.7% compared to January – September 2023) and earned revenues of 152.4 million euros (-6.6%). The company’s 9-month EBITDA is -4.1 million euros and its net loss is -5.2 million euros. As previously reported, the company plans to use external financial instruments to limit losses and ensure financial capacity.
“Taking into account the lessons learned this year, the changed market situation and the need for greater flexibility in risk management, we are already planning next year and the summer season with great care. Our immediate goal in the last quarter of the year is to ensure financial stability, which is important to balance the fluctuations in cash flow that arise due to the nature and seasonality of the business. The further goal is to effectively plan the next seasons and thus get back on the path to sustainable profitability,” says Kaikaris.
“Novaturas” reports that it continues dialogue with financial institutions about possible solutions for strengthening financial capacity, which would simultaneously open up opportunities to invest in further improvement of customer experience and expansion of services. The company will inform about the solutions in a separate announcement through the stock exchange.
Looking at the third quarter as a whole, the company recorded an increased number of pre-sale reservations for the winter season in all Baltic countries. In the period from July to September, winter season reservations in Lithuania and Latvia increased by 29.7% and 42.6%, respectively, compared to the same period last year. Estonia has been experiencing a decline for some time due to the overall more difficult macroeconomic situation in the country, but sales increased by 22% for the entire quarter.
Stronger growth was recorded in Egypt, the Canary Islands and the United Arab Emirates (Dubai). In addition, “Novaturas” has observed a greater interest in exotic destinations – compared to the previous year, +31.8% within the group. Among the company’s far-flung winter destinations, Vietnam (Saigon), Mexico (Cancun) and Indonesia (Bali) have seen the fastest growth in sales.
The increase in pre-bookings reflects both travelers’ trust in “Novaturas” and the habit of planning trips ahead of time, as encouraged by the company. This gives travelers the opportunity to choose from a wider range of flights and hotels, while the company can plan volumes more confidently.
The company continues to develop solutions to enhance the customer experience, including hybrid travel packages that will expand the hotel offering to travelers. By integrating new accommodation service providers, “Novaturas” plans to offer customers more flexibility and more attractive prices. In addition, the hybrid packaging solution is also associated with improvements in operational efficiency, as it will contribute to the filling of scheduled flights. Hybrid travel packages are expected to be available to customers in the fourth quarter of this year.
Another improvement planned for this year is the continuous improvement of the company’s website, thereby also consistently strengthening direct sales. Taking into account customer feedback, the travel search function and the display of results are being improved. “Novaturas” also plans to use artificial intelligence tools to provide more detailed hotel descriptions and collect reviews from various platforms, which will help customers choose the most attractive hotel option for them personally.
Novaturas: A Comedy of Errors or Just an Average Day at the Office?
Grab your popcorn, folks! “Novaturas” is back with a new episode of *As the Travel Turns*. Who knew that vacationing could come with plot twists that would make a soap opera writer weep with envy? So, here we go: the company had revenues of a mere 61.1 million euros this quarter. That’s a 3.6% drop compared to last year. Look out, world! We’ve found negative growth — and it’s sporting a lovely pair of sandals from the Greek islands.
Financial Gymnastics
Now, let’s talk EBITDA. Oh, the joys of accounting! This quarter, “Novaturas” achieved a dazzling negative EBITDA of 2.6 million euros. Who knew they could channel their inner gymnast so gracefully? A net loss of 2.9 million euros has turned heads faster than a tourist spotting a sunbather in the wrong spot. But don’t fear, because September pulled a rabbit out of the hat and made it somewhat profitable.
The Struggle is Real
Kristijons Kaikaris, the head honcho at Novaturas, says they felt the sting of fierce competition, especially for those oh-so-coveted trips to Turkey and Greece. You know what’s even more competitive than a Black Friday sale? A travel agency fighting for your attention during peak season! “Moderate optimization” sounds like a fancy way of saying they’re trying not to pull each other’s hair out while maintaining customer trust amidst an oversupply of travel packages.
A Summer of Discontent
Despite the chaos, they managed to serve 79.1 thousand customers. But wait, it’s a drop from last year’s 85.7 thousand. Metaphorically speaking, if those numbers were fish, “Novaturas” would be throwing them back as “catch and release.” But here’s a twist worth mentioning: the number of customers flocking to sunny Spain has skyrocketed by 137%. That’s right! While everyone else is grappling with an 11.2% drop in Turkey, Spain’s beaches are acting like an all-you-can-eat buffet – no wonder they’re irresistible!
Beyond Borders
And guess who’s benefitting? Well, “Novatours,” the Latvian side of the duo, served 15.2 thousand customers, and that’s a *slight* increase from last year. More tourists? Looks like we’ve just found a silver lining among the storm clouds hovering over Europe.
The “What’s Next?” Game
Moving on from the past, our star team plans to use external financial tools to get their act together. Think of it as the travel version of putting on a superhero cape. But can it save them? Plans for next year involve intense risk management and ensuring they don’t end up financially stranded in a tropical paradise without a return ticket.
A Sneak Peek into the Future
And what’s that I hear? Sounds like the winter season is bringing in an increase in pre-sales across the Baltic, particularly in Lithuania and Latvia. Perhaps everyone is eager to escape the winter blues. Meanwhile, Estonia is dragging its feet, but hey, a 22% increase is still a reason to pop the champagne!
The Exotic Outing
As if that wasn’t enough fun, the company also noted a 31.8% rise in exotic destination interest. Vietnam, Mexico, and Indonesia could be on the guest list for the next travel soirée. Who knew that daydreaming of tropical beaches could turn into actual bookings?
Reinventing the Wheel
“Novaturas” has big plans for enhancing customer experience — hybrids aren’t just for cars anymore! They’re rolling out hybrid travel packages and revamping their website, guaranteed to improve your experience navigating their site faster than your GPS can get you to the airport. With AI tools in the mix, next year’s booking woes might just be a thing of the past.
Closing Thoughts
So here we are, folks. Is “Novaturas” putting the fun back in travel or merely bumbling through adversity? Only time will tell, but if there’s one thing we know, it’s that the travel industry is as steeped in entertainment as a bad sitcom. Here’s to hoping they can turn it around before we reach for our travel bingo cards again!
In a notable financial report, “Novaturas,” which encompasses the Latvian tour operator “Novatours,” revealed that its revenues for the third quarter of 2024 reached €61.1 million, reflecting a 3.6% dip compared to the same period in 2023, illustrating the ongoing challenges faced in a competitive market.
Despite these revenues, the company reported a negative EBITDA of €2.6 million and a net loss of €2.9 million, although the results were somewhat alleviated by a profitable month in September, suggesting a flicker of recovery amid struggles.
The CEO of “Novaturas,” Kristijons Kaikaris, commented on the operational hurdles, stating, “In the third quarter, we still felt the negative impact of the above-mentioned reasons, namely the surplus of trips and the fierce price competition in the market, especially for trips to Turkey and the Greek islands.” He further explained, “In order to ensure customer satisfaction and maintain their trust even in overproduction conditions, we have carried out a fairly moderate optimization.” The company’s relationships with airlines imposed additional limitations on its travel optimization efforts, but thanks to a diverse array of destinations, “Novaturas” was able to minimize quarterly losses and achieve profitability in September. Kaikaris expressed a cautiously optimistic evaluation of the overall dynamics in the tourism market this year.
During the third quarter, “Novaturas” catered to 79.1 thousand customers, a decrease from 85.7 thousand in the same quarter of the previous year. This decline was primarily influenced by an 11.2% drop in sales to Turkey due to an oversaturated market. However, the company managed to partially diversify its offerings; the most notable surge in customer engagement was observed in the Spanish resorts, which saw a remarkable 137% increase. This boost was largely attributed to the expanded offerings in Malaga, renewed leisure trips to Mallorca, and the rising appeal of the Costa Brava and Costa Dorada resorts.
From January to September 2024, “Novaturas” served a total of 191.8 thousand travelers, marking an 8.7% decrease compared to the same period last year, accompanied by revenues of €152.4 million—a decrease of 6.6%. The company’s EBITDA for the nine-month period also stood at -€4.1 million, with a net loss of -€5.2 million. To address these financial challenges, the company has publicly outlined its intent to leverage external financial instruments for loss mitigation and to strengthen its financial groundwork.
Kaikaris noted, “Taking into account the lessons learned this year, the changed market situation and the need for greater flexibility in risk management, we are already planning next year and the summer season with great care.” He emphasized the pursuit of financial stability as a paramount goal for the last quarter, crucial for navigating cash flow fluctuations inherent to the seasonal nature of their business operations.
“Novaturas” is engaged in ongoing discussions with financial institutions to explore potential strategies to enhance its financial capacity, which could simultaneously lead to improved customer experiences and service expansions. The company plans to make announcements about these strategies via the stock exchange, keeping stakeholders informed.
The company observed a significant uptick in early reservations for the forthcoming winter season across all Baltic countries during the third quarter. In Lithuania and Latvia, winter season bookings surged by 29.7% and 42.6%, respectively, compared to the same timeframe last year. Estonia, however, faced a continued downturn in bookings due to adverse macroeconomic conditions, yet managed a 22% increase in sales for the entire quarter, indicating some resilience.
A notable spike in interest was recorded for destinations such as Egypt, the Canary Islands, and the United Arab Emirates (Dubai), with a 31.8% increase in demand for exotic locales compared to last year. Prominent among the company’s far-flung winter travel options, sales for Vietnam (Saigon), Mexico (Cancun), and Indonesia (Bali) showed the most substantial growth.
The heightened pre-booking activity underscores travelers’ renewed trust in “Novaturas” and reflects a growing tendency among tourists to plan their trips well in advance, encouraged by the company. This strategy allows customers greater access to diverse flight and hotel options, while also enabling “Novaturas” to manage its volume projections with greater confidence.
Furthermore, the company is committed to enhancing the customer experience through innovative solutions, including hybrid travel packages that broaden the hotel options available to travelers. By aligning with new accommodation service providers, “Novaturas” aims to deliver increased flexibility and more competitive pricing. Anticipation is building for the rollout of these hybrid travel packages, expected to be available to customers in the fourth quarter of this year.
Another significant improvement on the horizon includes ongoing enhancements to the company’s website, which will subsequently bolster direct sales initiatives. By incorporating customer feedback, the travel search capabilities and result displays are set to be optimized. Additionally, “Novaturas” plans to harness artificial intelligence technologies to offer more detailed descriptions of hotels and aggregate reviews from various platforms, assisting customers in selecting the most suitable accommodation for their individual needs.
To the previous year. Countries like Vietnam, Mexico, and Indonesia are becoming increasingly popular among travelers seeking unique vacation spots — a refreshing twist in the world of travel.
In terms of innovation, “Novaturas” is embracing the future by enhancing customer service through revamped offerings, including hybrid travel packages tailored to meet diverse traveler needs. The company is also in the process of overhauling its website, with features designed to streamline booking processes and improve navigation. With artificial intelligence tools being integrated into their operations, the hope is to alleviate common pain points that travelers face.
As we wrap up this financial narrative, it’s clear that “Novaturas” is navigating a tumultuous landscape, balancing the dual challenges of intense competition and changing consumer preferences. While they have faced setbacks, their resilience and innovative strategies might just be what is needed to adapt to this new era of travel. So, whether they soar high or stall out in turbulence, the journey ahead promises to be as unpredictable as a holiday flight — with all its ups and downs.
Here’s hoping that 2025 brings a fresh perspective and an influx of adventurous travelers eager to explore the offerings from “Novaturas!” With a focus on optimizing their operations and expanding destination choices, they just might turn the tide in their favor. Until then, let’s keep our suitcases ready and our travel dreams alive!
