Preliminary June results of Novaturas: strong positions in summer destinations of competitive advantage, growing winter sales

Novaturas Group, the leader in the Baltic tourism market, recorded revenues of EUR 22 million in June, compared to around EUR 22.9 million at the same time last year. The company served approx. 30 500 customers, compared to around 32 000 in 2022. The average travel package price for June remains relatively stable and similar to last year’s, despite a reduction of around 30 per cent in aviation fuel costs compared to last year.

Total revenues recorded in the period from January to June account for 100 million, which is 10 per cent more than in the same period in 2022. This change is attributed to the diversification of destinations implemented by the company, as well as to the increase in early bookings and economic factors that determine the pricing of travel. The number of customers served was 125 000, compared to around 128 000 in the same period last year. 

“With the summer programme, we continue to diversify our destination offering and focus not only on Turkey, which is offered by all tourism market players in the region. While we are recording lower sales in this destination than last year in June, we are building our competitive advantage in other popular destinations by providing a wide range of hotels, quality, flight options and other convenient aspects for our customers. Looking at all other summer destinations apart from Turkey, we see an overall sales growth of over 5 per cent, with some destinations standing out in particular – for example, sales to Montenegro are up by around a third this June, and we have sold around 2.5 times more trips to Tunisia.

We are implementing the programme in a balanced way, taking into account travellers’ behaviour, habits and sales peaks throughout the year. This way we are able to avoid creating oversupply, which is something we have been seeing a lot of lately on the market, with flight cancellations and changes in programmes,” says Vitalij Rakovski, CEO of Novaturas Group.  

Early bookings for the next winter season have continued to grow in June. The company is currently recording sales about 2.3 times higher than in the same period last year. Egypt and Tenerife are the predominant winter holiday destinations across the Group, but there is also a marked increase in interest in the newly launched Jordan destination, which is now in the top three destinations of the winter early bookings programme of Novaturas.    

Following the best practices of the leading airlines, Novaturas Group has now hedged more than 80 per cent of its total sales volumes with derivative financial instruments against aviation fuel price and currency fluctuations. In this way, the company aims to ensure sustainable financial results and minimise the risks for its customers to the maximum extent.

In addition, in June, Novaturas Group recorded sales of around 70 per cent of this year’s programme. The company is now actively preparing for the launch of its next summer season offers, which will include not only the widest range of destinations in the region but also new destinations.

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. In 2022, Novaturas Group recorded revenues of EUR 197 million and served 267 000 passengers in Lithuania, Latvia and Estonia.   

Vygantas Reifonas

CFO of AB Novaturas