Happy Tour, the biggest domestic travel agency, which was taken over by Spain's GED investment fund late last year, posted turnover worth 27.5m euros in the first half of the year, up 15% against the same period in 2007.
In the first six months of 2008, the company registered net income worth 1.4m euros, over 15% higher than the level reached in the corresponding period of last year, according to Happy Tour officials.
Whereas most agencies offer traditionally popular holiday destinations such as Turkey, Greece and Spain, destinations to the USA, Dubai and Scandinavia, as well as cruises in the Mediterranean and the Caribbean, were the main growth drivers behind Happy Tour's turnover. In addition, new contracts signed with corporate customers also spurred growth.
"We registered an above 20% growth rate for destinations other than the traditional ones such as Greece, Turkey and Spain. In the wake of the declining dollar, prices in the US are very attractive for holidaymakers who want to shop abroad. At the same time, there is a great deal of demand for destinations such as Dubai or Scandinavia, which, irrespective of the season, are popular," explained Nicolae Demetriade, general manager of Happy Tour.
In terms of cruises, the growth rate is even higher, even though this type of offer is relatively new on the domestic market. "Demand for cruises in the Mediterranean or the Caribbean has seen an over 30% growth rate. The number of contracts that we managed to sign with corporate customers has also pushed our turnover higher," specified Demetriade.
At the end of last year, Happy Tour was entirely bought from the Demetriade family by investment fund GED Eastern Fund II, a division of Spain's GED Capital Management, which intends to continue to target the acquisition of travel operators in light of the favourable conditions on the Romanian market.
According to the latest statements made by GED representatives, investments in Happy Tour's development will amount to 15m euros over the next 2-3 years. Also, the fund's main targets are travel agencies that are run by domestic entrepreneurs, companies where middle management is weakly structured and sometimes nonexistent. In addition, the Spanish fund also targets travel agencies with services on the corporate segment.
In line with the latest estimates made by Happy Tour officials, turnover is forecast to top 56m euros by yearend, up from 49.1m euros in 2007.
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