Whereas in 2005 it took the cumulated turnover of the top six travel agencies to reach the 100 million-euro threshold, in 2006, it took only the top three players to generate a business worth about 90 million euros.
The top ten travel agencies in Romania reached a cumulated turnover of about 200 million euros in 2006, while in 2005 the cumulated turnovers of the top ten players did not exceed 152 million euros. This indicates an average growth of 31% in the business of the trendsetters on the market of travel offers.
"This growth is not the result of greater demand alone. The companies have consolidated, they have expanded the number of offices, have invested in development and that has showed in the turnover and profits, too," says Traian Badulescu, spokesman for the National Association of Travel Agencies (ANAT).
The highest growth of 2006 came from Paralela 45, which saw its business go up by 50% from 16 million euros in 2005 to 24 million euros in 2006, according to the data it provided. On the other hand, Happy Tour and Visit Romania recorded the smallest growth, of 22% each, according to the data they supplied.
The main players on the market say that the growth is the result of a number of factors, three of which are important: improvement in the living standards, the entry of many low-cost airlines on the market and the ability of the agencies to get charter flights at lower and lower prices. On top of this, comes the about 20% increase in the business travel.
"The emergence of low-cost and charter flights has caused a change on the tourist transportation market. For most destinations, the coach was replaced by charter or low-cost flights at similar prices. After all, we already know other low cost companies will enter the market, too, which will further push prices down," says Aurel Pavel, general manager of J'Info Tours agency, one of the top ten travel agencies on the domestic market.
The number of charter flights that travel agencies made available to Romanian tourists has been going up over the last few years, and will continue to increase in the coming years, the main players say. The favourite destinations include Turkey, Tunisia, Greece and Spain, but operators introduce new charter destinations, as well, intended to arouse curiosity, such as Madeira, Sardinia and Venice.
"The trend in 2006 was to go for destinations that can offer both a stay and cultural travel. People are looking for something new and are tempted by destinations they have heard nothing about," Pavel feels.
On the other hand, the spending of foreign tourists visiting Romania has been going up for a number of years, by 15-20% each year. Although the number of incoming tourists increased by only 2% in 2006, the revenue they generated rose by 17%.
Travel industry
Cumulated turnover of the top ten agencies went up 31% to some 200m euros from 152m euros in 2005
Highest growth was reported by Paralela 45, 50%, from 16m euros in 2005 to 24m euros in 2006
Lowest growth was reported by Happy Tour and Visit Romania, 22% each
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
