Preliminary October results for Novaturas: prompt response to changes in demand, customer trust

Novaturas Group, the leader in the Baltic tourism market, recorded revenues of EUR 24.9 mln. in October, compared to around EUR 25 mln. at the same time last year. The company served more than 30 thsnd. customers, compared to around 31 thsnd. last year.  

Total revenues recorded in the period from January to October account for 191.7 mln., which is 7.7% more than in the same period in 2022. The number of customers served was 240 thsnd., compared to around 248 thsnd. in the same period last year.

“We reacted immediately to the onset of events in Israel and took resolute decisions to change our offering of flights. In view of the circumstances and the drop in demand, we will not operate flights to Jordan this year, but these are scheduled to start from March next year. We have given customers the flexibility to choose an alternative travel option.

In addition, we have optimised the Egypt programme and reduced the number of flights on a group-wide basis, thus managing the risks of demand volatility. It is nevertheless important to note that we have retained the destinations of both Sharm el-Sheikh and Hurghada having evaluated our customers’ needs, while our competitors have cancelled some of their resort offerings. By changing the flight programme, we have again given our customers the flexibility to change their travel dates or other conditions.

We are happy to see that customers trust us and a significant share of them have remained loyal – we have retained around 60 per cent of our customers in Latvia and Estonia following the change of our programme. In Lithuania, we have so far ensured that all travellers travel to Egypt as they had planned, and further we adapt the programme in response to demand,” says Vitalij Rakovski, CEO of Novaturas.  

The high satisfaction rate measured by the company through the Net Promoter Score (NPS) remained stable throughout the summer season, with a group-wide satisfaction rate of 61%. According to the company, at times when external circumstances or other unforeseen conditions lead to changes in travel plans, trust in the tour operator and a good experience become a key criterion for customer loyalty. 

Due to the changes in the Egypt and Jordan programmes the number of seats on group-wide flights has been reduced by around 9 thsnd. by the end of the year, but this represents only around 3% of capacity of the total annual programme of the company.

End of summer, successful Montenegro and Tunisia destinations

The TOP3 summer season destinations offered by the company in 2023 remained the same as last year, with Turkey, Greece and Montenegro taking the top spots. 

At the same time, however, there are some differences in the needs of Baltic customers. In Lithuania, Tunisia has overtaken Montenegro in terms of popularity this summer season, while in Estonia, Montenegro has overtaken Greece to become the most popular holiday destination after Turkey.  

In addition, the first Novaturas flights to the newly launched Vietnam took place in October, and it is the second most popular winter exotic destination this season. It is estimated that Vietnam is the destination of choice for 1 in 8 of the long-haul customers of the company.

Focus on team and investor relations

In order to boost team motivation and strengthen cooperation, an annual company event and a 4-day workation in Antalya, Turkey, was organised in October for all employees of Novaturas Group.

In addition, the company is increasingly focusing on targeted engagement with investor communities. At the beginning of November, Novaturas took part in an event organised by Investoru Klubs in Jūrmala, Latvia, and in the coming months it will participate in investor events in Lithuania and Estonia. 

At the end of November, the company will announce its QIII financial results.

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

Vygantas Reifonas, 

AB Novaturas, CFO