This Travel Agency May Still Have Significant Upside Potential

Photo of author
Written By Faith Boluwatife has exhibited strong performance since March, with its stock appreciating by over 37%. The company’s Q1 2024 financial results highlight significant growth in gross bookings, which rose by 12% year-over-year.

Bookings Soar

Credits DepositPhotos

When adjusted for foreign exchange (FX) rates, gross bookings surged by 42%, driven by strong demand in key markets such as Brazil and Mexico.

In Brazil, which is the company’s largest market and over twice the size of the Mexican market, gross bookings on an FX-neutral basis increased by 21% to USD 553 million compared to the previous year.

This growth outpaced that of Mexico, where bookings grew by 15% from USD 218 million to USD 250 million. The impressive performance in Brazil underscores the importance of this market to’s overall growth strategy.

Moreover, the Packages, Hotels & Other Travel Products Segment saw a 14% increase in revenue compared to the prior year quarter. This segment now accounts for 65% of total revenue, up from 62% in the previous year, indicating a strategic shift towards higher-margin offerings.

Financial Health and Balance Sheet Analysis has demonstrated prudent financial management, particularly in reducing its long-term debt, which now stands at $1.944 million. This results in a long-term debt to total assets ratio of 0.22%, reflecting a strong balance sheet.

However, it is worth noting that cash and cash equivalents have decreased by over 15% since the last quarter, although the quick ratio remains stable.

Despite the decrease in cash reserves, the company’s financial health appears strpmg, with low levels of long-term debt relative to total assets. This financial stability positions well for future growth initiatives and provides a buffer against potential market fluctuations.

Strategic Initiatives and Market Opportunities is actively pursuing an “online-offline” strategy in Brazil and Argentina. This involves opening physical stores to tap into the offline market, aiming to acquire customers who are initially not online and subsequently encouraging them to engage in online transactions.

This strategy is crucial as half of the market in Latin America remains offline. Currently, offline stores and call centers represent 13% of the company’s bookings, and ten stores have been opened in Brazil.

The offline strategy could significantly enhance brand awareness and capture a substantial portion of the offline market in these regions. By building trust through physical presence, can drive more online engagement and bookings, thereby increasing its market share and revenue.

Potential Risks and Challenges

One potential risk for is the possibility of a revenue slowdown during the Brazilian winter months (June to August), which typically see less domestic travel. However, historical data indicates that Q2 and Q3 gross bookings last year increased compared to Q1, suggesting that the company could still achieve growth despite seasonal variations.

Additionally, while the company’s quick ratio below 1 indicates a short-term liquidity concern, the low levels of long-term debt and continued revenue growth may mitigate this risk. Investors may be willing to overlook short-term cash fluctuations in favor of the company’s strong growth trajectory.

Valuation and Future Outlook’s valuation remains attractive, with the price-to-sales ratio at relatively low levels compared to its five-year trend, while revenue per share is at a five-year high. This suggests potential for further stock appreciation, assuming revenue growth continues.

Given that earnings per share have only recently turned positive, the recent stock growth is likely driven more by revenue growth than by earnings growth. This indicates that the market recognizes the company’s strong revenue generation capabilities and future potential.

Outlook Remains Positive

Credits DepositPhotos has shown significant growth, particularly in the Brazilian market, and maintains a healthy balance sheet. The company’s strategic initiatives, such as the “online-offline” strategy, and continued revenue growth position it well for future upside.

While there are potential risks, such as seasonal slowdowns and liquidity concerns, the overall outlook for remains positive. For these reasons, appears to have substantial potential for further upside, making it an attractive investment opportunity.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.