Preliminary March results of Novaturas: tailoring of the programme, focus on travellers’ expectations
Novaturas Group, the leader in the Baltic tourism market, recorded revenues* of EUR 13.8 mln. in March – the same as in the corresponding period in 2023 (EUR 13.8 mln.). The number of customers served was approx. 14.8 thsnd., compared to around 15.5 thsnd. in March last year.
Continued diversification of destinations and tailoring of the programme to the needs of customers help ensure efficiency, which is one of the priorities of the company. A group-wide load factor for leisure destinations has remained very high for the third month, reaching 97% in March.
“We are consistently pursuing our diversification strategy and focusing on those destinations where we see the greatest potential. Firstly, we are meeting our customers’ needs, and secondly, we are maintaining operational efficiency and sustainability. By monitoring traveller behaviour, we are adjusting our planned volumes in Turkey, where competition is the fiercest, and increasing our capacity in the Greek islands, Montenegro, which has been a great success for more than a year, as well as in the Italian and Spanish resorts, and Bulgaria.
As the market leader offering the widest range of destinations, we have the strength to monitor the market dynamics and to make the necessary decisions promptly in order to achieve customer satisfaction and, at the same time, profitability,” says Kristijonas Kaikaris, CEO of Novaturas Group.
In March, the company launched the first familiarisation tours of destinations and hotels for partners, during which the representatives of agencies are introduced to the upcoming season news. The first such fam tour took place in Cyprus introduced by the company as a new destination for this summer season. In total, the company is planning around 25 group-wide tours for its Lithuanian, Latvian and Estonian partners in spring and summer in different destinations, including Tunisia, Malaga, Rhodes, Crete, Montenegro, Turkey and Bulgaria.
In addition, as every year, the company has organised awards for the best agents and agencies in Lithuania, Latvia and Estonia to promote long-term partnerships and successful cooperation. The Estonian branch of the company celebrates its 20th anniversary this spring.
*The company reports revenue results corresponding to the number of travellers who started their trip in the month as published. In order to provide a clearer and more accurate presentation of the results in the quarterly financial statements, IFRS 15 (International Financial Reporting Standard 15) will be applied on a quarterly basis as of 2024 – until now Novaturas has been applying this standard once a year. Its application will result in a requirement to recognise revenue over the entire travel period, rather than at the start of the trip. Therefore, when recording the results of QI (and subsequently other relevant quarters), EUR 2.1 mln. of the revenue of the company will move from March 2024 to April 2024. By comparison, if the provisions of the standard were applied in 2023, a similar adjustment would result in the revenue of EUR 1.4 mln.
About the company
Novaturas Group is the largest and the only charter flights‘ local tour operator in the Baltic States, offering summer and winter trips to more than 30 destinations worldwide and more than 100 tours. In 2023, Novaturas Group recorded revenues of EUR 209 million and served 259 000 passengers in Lithuania, Latvia and Estonia.
Vygantas Reifonas
CFO of AB Novaturas
