The company achieved a 43.3% reduction in costs (67% in the 2nd quarter) to help mitigate a 63.3% decrease in revenue
The company Contingency Plan has safeguarded the liquidity and viability of the company in the short term, while the adaptation of the Strategic Plan up to 2022 aims to maintain its leadership and leverage any opportunities in the medium and long term.
Gabriel Escarrer ( CEO) states that in the face of the unprecedented challenge posed by COVID-19, the success of travel companies in 2020 will be measured by their resilience: “This is not the time to be thinking about profits, but rather about long-term survival and strength, focusing on the basics and consolidating our competitiveness in the new era of post-COVID travel. The importance of this transformational process, which builds on our efforts in recent years in terms of the renovation of obsolete hotels and destinations, digitalisation (especially the focus on melia.com and meliapro.com), our commitment to talent, and the transition towards a more diversified business model, will be crucial for the future of our company, where the resizing of the market after the crisis will bring a more competitive business environment and a more than likely process of consolidation.”
Source : Company