The online booking of air and rail tickets is becoming increasingly popular among Romanians who prefer to spend their time doing other things than running from one agency to another in search of the best prices. The trend comes after the market witnessed annual growth of 225%.
"Everything started from our ticketing department and that helped support the other business. It was a small department that we wanted to expand," says Daniel Truica, general manager and minority shareholder of travel agency Vola.ro online.
He holds 33% in the business, while the rest belongs to a legal entity from Poland, Fru.pl. "(...) We wanted to develop the ticketing department and we looked at the online environment, which is well suited to this type of sales," says Truica. Through Vola.ro, plane tickets can be booked online, without any booking application. The idea was borrowed from abroad, where this type of booking is already extremely popular.
Initial investments revolved around 100,000 euros. The company works with Amadeus for the software and online booking management side of the business.
The company has also invested significant sums in promotion. "A large part of the marketing budget went to search marketing. We expect search marketing investments to revolve around 100,000 euros in 2008," specified Truica.
In February, Vola.ro received more than 4 million euros for investments from Poland's Tar Heel Capital fund, with the money going to the development of new services. After eight months, Vola.ro posted 830,000-euro turnover and this year, the company's manager projects a 225% increase against last year. "We expect 3.5m-euro turnover, namely a 225% increase, in line with market development," says Truica.
At present, the company has 10 employees, of whom three on the administrative side and 7 on the ticketing one and expects to reach 20 employees by January 2009.
The weak penetration of credit cards and the shortage of a skilled workforce are the main hurdles the company has to cope with.
Another website, launched in February 2008 by WASTEELS Romania company, is tripTkts.ro, where train and plane tickets can be booked online.
The company is currently the only agency in Romania licensed by SNCFR to issue rail tickets for international and national routes. Investments in the website have so far reached some 5,000 euros, but this does not include the module for the calculation of train tickets, which is part of a separate contract.
Marian Anton, marketing manager with Wasteels Romania, says the website is promoted only online, while the value of ad investments revolves on average around 1,000 euros per month. Revenues brought by the website are insignificant, but the company expects them to rise shortly.
Vola.ro
Plane tickets can be booked online, with immediate confirmation
Initial investments revolved around 100,000 euros
Has invested significant sums in promotion and expects search marketing investments to revolve around 100,000 euros in 2008
Turnover generated after the first eight months reached 830,000 euros
Expects to generate turnover worth 3.5 million euros in 2008, up 225%, in line with market growth
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