Every cloud has a silver lining. Rising consumer prices have long been perceived as trouble and to be countered by fair means or foul, with uncontrolled inflation a harbinger of deep water, as it was in 1929.
Without going that far, a moderate price increase could have beneficial effects. For example on Italy's public debt, which is already partially benefiting. But also on financing for private companies that were shrewd enough to anticipate market trends, and cautious enough to go for fixed rates rather than be lured by the siren call of variables.Which is what happened to the Alpitour Group, Italy's largest tour operator: a small colossus with a turnover of €2 billion pre-Covid. "That inflation would return to growth had already been in the air for some time," said CEO and chairman Gabriele Burgio at Italy's leading B2B travel trade fair. “Even before Covid the markets were over euphoric, and it was inevitable that sooner or later prices would come under pressure. In April 2020 we completed a major financial operation at fixed rates, which is now proving invaluable. But it’s a very different state of affairs for companies that were exposed to variable rates without hedging.
So Alpitour has put itself in an ideal position to take advantage of the recovery, and with its companies - a tour operating division, a hotel company and an airline – sailing under clear skies it is heading towards closing 2022 with a 1.6 billion turnover. “With a normal winter and next summer at this year's levels, Burgio added, "in 2023 we expect to exceed the 2 billion threshold.” Even more important are the margins, which are growing and “are better than in the past, thanks to our investments in technology and how we reorganized in this two-year period.'
Massimiliano Sarti
Journalist
