In 2016, Vola.ro intends to enter the corporate travel market, either through the acquisition of a player in the field from the Romanian market or by developing its own department by recruiting a top manager active in this segment.
The announcement comes in the context where, starting December 1st, IATA has modified the billing period for airline ticket sales of member companies. In addition to this change, IATA will look more closely at the guarantees requested from travel agencies, guarantees which are calculated based on the agencies’ financial situations and sales made through IATA over a specific period of time.
Vola.ro representatives estimate that many travel companies, in general, and corporate ones, in particular, will face cash flow problems with the changes imposed by IATA, which will lead some of their owners to sell their businesses.
Currently, Vola.ro operates in the ticketing and holiday package segments, recording a sales volume of 27 million EUR in 2014, and for this year, it estimates a turnover of 43 million EUR, an increase of nearly 60%.
In February of this year, Vola.ro benefited from a 5 million EUR investment from 3TS Capital Partners, money the company announced it would direct into the technological platform, as well as development through entry into new markets.
“We are even open to providing an experienced manager in the corporate travel segment, who wants to join us, an ‘incubator’ in which to build the travel department as a shareholder,” stated Daniel Truica, managing partner and founder of Vola.ro.
Source: Profit
Frequently Asked Questions
How does Vola.ro plan to enter the corporate travel market?
Vola.ro aims to enter the segment in 2016 through either an acquisition of a Romanian player or by building an internal department led by a top manager who could also join as a shareholder.
What impact do IATA changes have on the travel industry?
New IATA billing rules and stricter guarantee requirements are expected to create cash flow issues for many agencies, potentially leading to market consolidation and business sales.
What was Vola.ro’s financial performance and growth?
Vola.ro recorded sales of 27 million EUR in 2014 and projected a turnover of 43 million EUR for 2015, a 60% increase supported by a 5 million EUR investment from 3TS Capital Partners.