Novaturas Group growth strategy: business expansion through technologies, sustainability and attention to clients & employees

The biggest tour operator in the Baltics, Novaturas Group, has introduced a new business strategy for 2023-2025. The company, having successfully survived the downturn of the tourism industry, has raised ambitious goals for growth and regional leadership, focusing on four main areas: technological advancement, improvement of traveler experience & choices, more sustainable trips and involvement of the whole team.

"The last few years were difficult for the tourism industry, however, we were able to successfully navigate the rapidly changing environment and even increase the trust in our company. We see the upcoming period as the period of sustainable growth for the whole group and an opportunity to fulfill a significant upward jump in quality - we aim to strengthen our leadership even further and to be a tour operator that makes it easy to travel with. The new strategy outlines this ambitious road ahead of us and reflects our priorities in order to create more value for travelers, our staff, partners and shareholders," says Vitalij Rakovski, CEO of Novaturas Group .

Technology will enable a wider selection of trips

According to the CEO, one of the main areas where Novaturas will invest in the next three years will be the introduction and employment of technological solutions and automated tools.

"Organized tourism is still viewed as one of the least digitalized tourism areas in the whole world, and Lithuania is not an exception. However, we at Novaturas seek to be at the forefront of the new developments. Rapid digitalisation can give us a competitive advantage, create additional comforts and give more choices to travelers,” says Rakovski.

In the near future, the company is planning to present a renewed website, where it will be much easier for travelers to select and book their trips. Novaturas notes that the demand for trips booked online is growing, so it’s imperative to ensure the best possible user experience and to match it with a high quality service.

Yet another goal is to increase the variety of trips offered by consolidating the supply of flights and hotels —  a dynamic packaging solution will be used for this goal.

Reacting to an especially dynamic environment and growing competition in the market, we will seek to employ pricing tools that are based on algorithms, which will allow the company to offer better prices to clients and to increase shareholder earnings.

“Dynamic packaging works like this: we will be able to offer travelers not only pre-packaged trips, as we are doing now, but to adjust to individual needs of our clients. For example, by using automation, we will be able to offer not only charter flights but also regular flights, and clients will be able to choose basically any hotel, not only the ones that constantly appear on our lists. That means that in the long run we will be able to significantly expand the selection of destinations including the ones serviced by airlines conducting regular flights. We will also be able to significantly increase the choice of travel dates, lengths and accommodation variety. These travel offers will be formatted digitally, based on the needs of a client,” explains the CEO of Novaturas Group.

He adds that technological and other kinds of business expansion solutions will help transform the activity of the company from a traditional travel operator to an integrated one.

More punctual flights, broader service scope

Rakovski also emphasized that the company has identified another crucial facet of its strategy, which is to enhance the customer experience.

“The pandemic outbreak has created significant disruptions in the market, causing travelers to face several inconvenient service disruptions. Airline punctuality has considerably plummeted, and the quality of service has endured severe setbacks. In contrast, the demand for travel has recovered faster than the industry could bring back the necessary competencies and workforce to ensure service quality. Therefore, our goal is to further improve the travel experience - ensuring high flight punctuality, appropriate hotel offerings, and impeccable service," underlined Rakovski.

The company operating throughout all the Baltic states is already working in this direction. For instance, last year, Novaturas implemented significant changes in the aviation sector in Estonia and Latvia. In Estonia, the company introduced flights using the new generation Boeing 737 aircraft, while in Latvia, it expanded its cooperation with airBaltic, which operates flights using new aircraft that ensures higher comfort and lower emissions.

Another improvement in customer experience is the continued service expansion. "The latest market trends indicate that travelers expect more convenience, safety, and personalization options from tour operators. We are adhering to such expectations with the launch of several offers— for instance, we’ve introduced a minimum price guarantee for the winter season, an additional punctuality guarantee, while rolling out offers for comfort seekers, such as private transfers to and from hotels in Antalya. Our aim is ongoing expansion of similar value added services, both free and paid, in the foreseeable future," says Rakovski.

Environmentally friendly flights and hotels

The new Novaturas Group strategy identifies sustainability as one of the priority focus areas."It’s only natural that concerns about the environment and our future are growing. More than 80% of travelers are interested to learn how they could travel more sustainably, but lack of understanding persists regarding the best course of action. Therefore, as a market leader, we will take proactive actions to reduce our environmental impact and provide information to travelers on ways they can contribute to sustainability," says Rakovski.

According to him, the company aims to achieve its environmental goals by reducing its CO2 emissions. The most significant contribution to this will be made through new partnerships with airlines that use modern, fuel-efficient aircraft and the partial application of an emissions offsetting mechanism.

In addition to more environmentally friendly flights, Novaturas will provide travelers with clearer information about hotels that adhere to sustainability standards, as well as  prioritize traveler education.

Will remain the center of competence

The fourth component of the new strategy is employee engagement. According to the company's CEO, the team and employees in tourism sector companies are the foundation of successful results as well as business expansion, therefore their well-being and motivation are one of the most important strategic directions.

The company is striving to be an attractive employer by taking real action, such as offering organizational structure and encouraging professional growth and talent development.

“We are the only tour operator in the Baltics which conducts all of its operations from Lithuania — from charter flights and hotel selection to technological solutions and client service. While other tour operators in our country sell trips that have been packaged in other countries, we create everything locally in Lithuania and we have teams in all Baltic countries. So we will keep investing in our staff, young talents, and developing their abilities and know-how, in order to keep our position as a center of competence and to preserve this unique feature that we have,” concludes Rakovski.

About the company

Novaturas Group is the largest tour operator in the Baltic States, offering summer and winter package holidays by plane to more than 30 destinations worldwide and more than 100 tours.

Vygantas Reifonas

CFO of AB Novaturas