Transformations In Tourism Industry

What has been Join UP! Baltic's performance and growth since its inception 2 years ago? And how is the company doing now?

If we look back at the full year of 2023 – we served over 103,000 customers in the Baltic States, and reached a turnover of 72 million euros compared to 49 million in 2022. Our financial results for 2023 reflect a strong and stable performance according to a business plan, and it is normal for a company entering a new market to incur losses during the first years. In terms of financial accountability, Join UP! Baltic's audited financial statements are publicly available, showcasing the company's fiscal responsibility and transparency. 

Moving into 2024, the company's performance has exceeded expectations. Preliminary data from the first quarter of 2024 indicates a profit of over 200,000 euros, demonstrating continued growth.

Join UP! Baltic has also expanded its range of destinations, doubling the offerings compared to the previous winter season and summer. This growth has been supported by a team of 52 local tourism professionals working across Join UP! Baltic offices in Riga, Vilnius, and Tallinn.

With a clear long-term vision in mind, we aim to achieve profitability by 2027, as outlined in our five-year business plan approved by the board. This plan underscores the company's commitment to long-term stability and strategic foresight in the dynamic tourism market.

What are the key goals for Join UP! Baltic in 2024? 

In 2024, we aim to continue our trajectory of growth by increasing our business volume by approximately 30%. At Join UP! Baltic, innovation is at the core of our business philosophy. Along with offering the most popular tourism destinations we continuously strive to bring new travel experiences to the Baltic market by launching innovative initiatives such as the first direct flight to Sri Lanka from all three Baltic capitals and introducing Egypt as an all-year destination since 2023. 

We innovate in terms of client service and experience, too. For example, our innovative project "Guide in the Pocket" launched in 2023 offers live consultations while travelling for our customers, exemplifying our commitment to continuous improvement and excellence in service quality. Innovations, setting new standards and bringing new possibilities for travelling are highly valued by customers. We observe that such an approach transforms and develops the market. 

How does the market react to such an approach and novelties? 

I believe that healthy competition always is a factor that helps everyone develop. For customers, new possibilities, a wider variety of choices, and innovative IT solutions are undoubtedly positive. These advancements enhance the travel experience, offering greater convenience and satisfaction. For other market players, our approach can serve as a motivation to evolve and innovate, leading to overall market growth and improvement. By setting higher standards and continually pushing the boundaries of what is possible in the travel industry, we not only benefit our customers but also contribute to a more dynamic and competitive market landscape.

However, there are not only positive side effects but also challenges. Such as the constant need to remind the market that Join UP! Baltic has long-term plans in the Baltics, we are fully operating following all legislation rules and are a fully local business that pays taxes here. Our commitment to the Baltic market is unwavering. Despite that Join UP!TM Is a travel brand with Ukrainian roots, Join UP! Baltic as a local company is fully operating following local and European Union rules and legislation, we have a local team of 52 local tourism professionals, and we have three offices in Baltic capitals. We are a licensed and officially registered provider of tourism services, and our stable and uninterrupted operations in the Baltics are guaranteed by a 100% deposit of 3.2 million euros in RIB bank. Our dedication to transparency, compliance with financial regulations, and proactive customer service initiatives underscore our stability and reliability. We remain focused on our mission to provide outstanding travel experiences while maintaining the highest standards of financial and operational integrity.

Join UP! Baltic also is an active participant in local tourism associations like the Association of Latvian Travel Agents and Operators (ALTA), the National Tourism Business Association of Lithuania (NTVA), and the Estonian Travel and Tourism Association (ETFL). 

Our goal is to continue growing and strengthening our position as one of the leaders in the Baltic tourism market and the most beloved tour operator by offering a modern, high-quality product, introducing new travel destinations, and embracing innovations. 

We already have a significant percentage of repeat customers and aim to become the most loved tour operator brand in the Baltics we plan to reach this by focusing on process improvements and quality service. We believe in continuous improvement and are committed to maintaining high standards. 

What are the main challenges in the relatively small Baltic travel market? 

First, it takes time to gain trust, especially in the conservative and competitive market which has been a number one challenge here. Also, the tourism market in recent years has been very dynamic and always changing due to factors like the economic situation, inflation, shifting consumer preferences, geopolitical situation, and even unusual weather conditions. These elements influence which flights and tours people prefer. Planning precise flight schedules and tour packages sometimes can be challenging because of these constant fluctuations. Being a tour operator in 2024 means being prepared for changes and being able to react quickly – it is like that in all 8 markets our brand Join UP!™ currently operates. Adaptation is key; we need to adjust strategically to meet market demands. It's a delicate balance to ensure we offer enough options without overwhelming the market. 

One way — how we adapt to market dynamics here is through cooperation with other market players to offer our customers the best possible service. Given the small size of the Baltic countries, strategic collaborations are essential to maintaining a profitable and healthy market. While this might seem unusual to some, we see it as a normal opportunity, and we are ready to cooperate with all tour operators in the Baltic market. Our goal is to ensure that our customers receive the best possible service, and collaboration with other industry players at times is a key to achieving this. By working together, we can better navigate the complexities of the market, enhance our offerings, and ultimately provide superior service to our customers.

You mentioned the Ukrainian roots of Join UP!™ - how is it doing in other markets?

Join UP!™ is an international tourism brand with 14 years of experience in tourism, internationally offering trips to more than 40 destinations. Tour operators with Join UP!™ brand work in Estonia, Latvia, Lithuania, Poland, Romania, Kazakhstan, Moldova, and Ukraine. Soon, this year, it will start operations in two new European markets: the Czech Republic and Slovakia. In 2023, across the eight markets where Join UP! operates, annual growth rates ranging from 3-10% were observed. The tour operators are poised for steady growth in all these markets. 

Talking about this summer – what are the most popular destinations?

It’s known for its all-inclusive resorts, stunning coastlines, and historical sites, Turkey remains the most popular destination for all three Baltic countries. Crete in Greece follows closely behind, offering its beautiful beaches rich cultural heritage and European standards of hospitality. Egypt holds the third position – since last summer, Join UP! Baltic is establishing it as a year-round destination. Traditionally considered a winter destination, the ancient wonderland now can be enjoyed also during the summer months. In summer, it's more affordable and quieter, with fewer tourists, days about 4 hours longer than in winter and summer-warm temperatures in the evenings. Additionally, the Balkan gem Montenegro is gaining popularity among Baltic travellers for its picturesque landscapes and Adriatic coast. Tunisia which we offer from Vilnius is approximately the same popular as Montenegro. 

We see that the economic situation seems promising with inflation slowing down – how does it affect travel predictions for the winter season? 

We observed that even when the economic situation was challenging, travel remained a vital part of life for people in the Baltic States - something that they are not refusing. Moreover, we noticed that people are exploring options for travelling more, seeking the most convenient and cost-effective ways to holiday abroad. Speaking of cost-effective travel, owing to good partnerships across our destinations, we have a compelling offer. We also encourage travellers who are accustomed to planning their entire trip on their own to enjoy holidays starting from the planning stage. Often, booking a trip through a tour operator can be the most cost-effective option compared to arranging each component separately. 

Additionally, using a tour operator saves time and effort in planning, as they handle all aspects of the trip. With Join UP! Baltic, travellers benefit from support and assistance throughout their journey with our unique "Guide in the Pocket" service, ensuring a smooth and stress-free experience. This service provides live customer support through popular messengers such as Facebook Messenger, Instagram Direct, Telegram, and Viber, allowing travellers to communicate, receive answers, and get assistance on the go during their trip. Regarding the plans and predictions for winter, they are promising. We are confident that trips to the most popular affordable winter destination, Egypt, will remain in high demand. Additionally, we expect that the demand for exploring more exotic destinations will continue. Our affordable exotic destination, Sri Lanka, is already on sale for winter and is highly sought after. In cooperation with the airline Flydubai, we will offer more exotic destinations such as Dubai, Maldives, and Zanzibar from the Baltic capitals.