Spain's eDreams records a significant 40% increase in full-year net profit
Barcelona-based travel booking platform eDreams ODIGEO recorded a significant increase in profitability for the fiscal year 2025, marking substantial growth in both net profit and revenues. The company reported a net profit of €45.1 million, representing a nearly 40% year-over-year rise [2]. This strong financial performance helped eDreams surpass the €700 million revenue mark for the first time in its 25-year history, with revenues growing by 6% to €717.9 million [1][3].
The driving force behind eDreams' growth has been second-year subscription renewals, according to the company's Chief Financial Officer, David Elizaga [2]. Subscription-based services, while common in industries like music, television, and telecoms, are relatively uncommon in the travel sector. However, eDreams has pioneered this model, offering customers a flat annual fee of €70-€90, giving them access to discounted airline tickets and hotel bookings through the company's platform [2]. This innovative approach accounts for nearly 87% of eDreams' profits, providing a steady revenue stream that strengthens the company's financial position [2].
By the end of fiscal year 2025, eDreams boasted a subscriber base of 7.26 million paying members, slightly surpassing a target set in 2021. The company projects adding at least another million subscribers by the end of the next fiscal year [2] .
Competition in the European online travel booking sector has increased in recent years, with several airlines launching similar services offering discounts and privileges for an annual fee. However, Elizaga believes eDreams provides a superior product for European travelers, who often favor flexibility and variety in their travel choices [2].
Sources:[1] eDreams ODIGEO Reports Revenue Growth and Gross Booking Value for the Fiscal Year 2025[2] eDreams Enjoys Strong Financial Performance in FY 2025, Driven by Subscription Services[3] eDreams ODIGEO Achieves Record Revenues, Profit in FY 2025, Outpaces Industry Growth
In the context of eDreams ODIGEO's financial growth, their Chief Financial Officer, David Elizaga, attributes the significant rise in profitability and revenue to the success of subscription-based services in the travel sector, a relatively uncommon model in this industry yet accounting for nearly 87% of their profits. Moreover, the company's focus on technology, enabling subscriber-exclusive discounts on airline tickets and hotel bookings, has fortified their financial position and contributed to their impressive subscriber base of 7.26 million paying members by the end of fiscal year 2025.
