Proving there is pent-up demand

By | Category: Travel tips & opinions

There has been some cynicism (from me included) about how much demand for travel there is at the moment. Tour operators and airlines would have you believe we are all anxious to go abroad but we are impeded by COVI-19 regulations either at home or in our destination.

the parent company of Opodo has shown there is travel demand

Yet despite hearing of huge percentage increases in sales the feeling is that there is much hype and little fact.

From eDreams ODIGEO comes evidence that there may be a lot of pent-up demand.

The company is the parent company of Opodo, one of the longest lived online travel agencies and operates throughout Europe, Australia and the USA as well as the UK.

It operates a subscription service called Prime to which people subscribe at a rate of €54.99 per year or about £47 and some pennies.

For that money subscribers get a guaranteed discount of all flights booked, up to 50% off their accommodation and the same discounts for all those travelling with you so that the savings are not limited to the name of the member.

As an example, the company says that if you book a flight costing between €150 and €299 with your Prime membership, you will save an average of €30 on your booking.

Is that sufficient of an incentive for people to sign up?

Yes.

By January this year it had signed up 758,000 members and estimated that it would have  two million members by 2023. It also meant that the company was sitting on liquid cash without recourse to bankers, governments of shareholders.

Given that in January most of us were in lockdowns and unsure of when we could travel again, that three-quarters of a million people wherever they are in the world had signed up showed confidence in not only wanting into travel but were prepared to part with cash not knowing they could travel again internationally suggests a pent-up demand.

Roll forward and in the three months to August this year, the company had signed up another half million subscribers on top of another quarter million or so in the period between January and June.

Now it has 1.5 million members which at €54.99 means it has almost €82,500,000 to cushion the effects of the pandemic as well as bookings.

Not only has the company hit upon a way of capturing customers at a difficult time, it has cash and has shown that there is a demand for travel even though other people might be wary.

All it has to do know is deliver on the offers.

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