In a recent battle between Ryanair and online travel agencies, Ryanair CEO Michael O’Leary accused eDreams Odigeo of misleading its shareholders by claiming they have authorized access to Ryanair flights through high court decisions in Europe. O’Leary stated that eDreams Odigeo does not have access to Ryanair content unless it unlawfully scrapes their website. While other online travel agencies like Expedia, eTraveli Group, and Kiwi have authorized access, eDreams Odigeo is missing and it is affecting their business.
During eDreams Odigeo’s earnings call, CEO Dana Dunne mentioned that the matter had been litigated in terms of access to content, with final judgments from high courts in Europe stating that their travel brands are within their rights to include all flights and related public data as part of their offering. However, O’Leary dismissed Dunne’s statements as “meaningless waffle” and claimed that screen scraping Ryanair’s website is illegal in countries like France, Italy, and Ireland. eDreams did not respond to O’Leary’s accusations.
The lack of authorized access to Ryanair flights has impacted eDreams Odigeo’s ability to sign up members for its Prime subscription plan, which offers flight, hotel, and car rental discounts in exchange for an annual fee. Without consistent access to Ryanair flights over the past nine months, eDreams has potentially lost around 1 million Prime members. This has been a significant setback for the company, which aims to reach 7.25 million Prime members by the end of the current fiscal year.
Despite the challenges with Ryanair, eDreams Odigeo managed to grow its Prime membership roster by 32% year over year in the June quarter, reaching 6.2 million members. The company remains on track to achieve its goal of 7.25 million Prime members by 2025. However, eDreams still reported a net loss of 1.2 million euros in the June quarter. O’Leary also criticized eDreams for overcharging its Prime members for services like baggage fees compared to what Ryanair charges directly.
The ongoing dispute with Ryanair has put pressure on eDreams Odigeo to resolve the issue and regain access to Ryanair flights for its customers. The company’s financial performance has been affected by the lack of authorized access, leading to potential losses in Prime subscriptions. Despite these challenges, eDreams Odigeo remains committed to growing its Prime membership base and meeting its long-term goals, while facing criticism from Ryanair CEO Michael O’Leary for misleading consumers and overcharging Prime members. The outcome of this dispute will likely have significant implications for both companies in the online travel industry.
