Serko targeting $100m revenue

LISTED travel technology firm Serko this morning unveiled an ambitious target to quadruple its annual revenue to over $100m.

Addressing the Serko AGM in Auckland, CEO Darrin Grafton admitted this was a “high bar” given the 2019 figure of $23.4 million, but outlined a clear strategy to achieve the milestone.

He said this year the company expected to lift its Australasian travel bookings through the Zeno platform from the current 4.14 million to five million, via the onboarding of House of Travel’s Orbit corporate business as well as the organic growth of resellers.

“We will also grow average revenue per booking to $7 from the current $5.65,” he said, with these combined measures seeing revenue boosted to $35 million.

“We are also confident we can replicate our Australasian success in the Northern Hemisphere,” he enthused, suggesting that if both the North American and UK/ European markets deliver five million bookings each at a similar revenue this would see the company exceed the $100m goal.

Grafton noted that since launching Zeno, 85% of Serko’s existing resellers had switched to new contracts “and we are now seeking continuous onboarding of corporates to the platform”.

He said customer numbers now using Zeno had doubled since Mar this year, to over 1,000 active trading clients per month.

As well as continuing to work with key TMCs, Serko sees a major opportunity in the “unmanaged travel” market, with the white-labelled SME Zeno product based on the serko.travel platform making it efficient for agents to service smaller clients.

“This is the product that powers Flight Centre’s CTGO offering and Helloworld’s Business.Travel offering,” the Serko CEO said.