Information agency Credinform presents a review of activity trends of the largest Russian companies in the touristic field.

The largest travel agencies and other organizations providing travel services (TOP 1000) in terms of annual revenue for the last reporting periods available to the state statistics bodies and the Federal Tax Service (2015 – 2020*) were selected for the analysis. The selection of companies and the analysis were carried out based on data from the Information and Analytical system Globas.

Net assets – is a ratio that reflects the real value of the company's property that is calculated annually as the difference between the assets on the company's balance sheet and its debt obligations. The net asset ratio is negative (insufficient property) if the company's debt exceeds the value of its property.

The largest company in the TOP 1000 in terms of net assets is YUG-BUSINESSPARTNER LLC, INN 2311114861, Krasnodar Territory, service delivery activity related to the pre-orders services. In 2019 net assets accounted for over 3.3 billion RUB.

TT-TRAVEL LLC had the smallest net assets in the TOP 1000, INN 7714775020, Moscow, travel agencies activity.

Property insufficiency in 2020 was expressed by a negative value of -1.4 billion RUB.

Covering the five-year period average net assets of the TOP 1000 companies tend to decrease with negative growth rates (Picture 1).

Picture 1. Change in average net assets ratios of the TOP 1000 in 2016-2019

Shares of companies with property insufficiency in the TOP 1000 had a negative trend to increase over the past five years (Picture 2).

Picture 2. Shares of companies with negative net assets of the TOP 1000 in 2016-2019

Sales revenue
The revenue of the top ten companies in 2019 amounted to almost 45% of the total revenue of the TOP 1000 companies. (Picture 3). This indicates a high level of monopolization in the touristic industry.

Picture 3. Shares of TOP 10 companies in the total revenue in 2019 TOP 1000

In general, there is a trend in revenue decreasing with decreasing growth rates (Picture 3).

Picture 4. Changes in the average revenue of the TOP 1000 in 2016-2020.

Profit and loss
The largest company in the TOP 1000 in terms of net profit is PROMETHEJ AND MIR LLC, INN 7702516409, Moscow, travel agencies activity. Profit in 2020 amounted to 98 million RUB.

Covering the five-year period the average profit of the TOP 1000 tends to decrease, with decreasing growth rates (Picture 5).

Picture 5. Change in average profit (loss) ratios of the TOP 1000 in 2016-2020.

Covering the past five years average values of net profit ratios of the TOP 1000 companies tend to decrease while average net loss increases. (Pictures 6).

Picture 6. Changes in average values of the net profit and net loss ratios of the TOP 1000 companies in 2015-2020.

Key financial ratios
Covering the five-year period the current liquidity ratio average values of the TOP 1000 were significantly exceeding the range of recommended values - from 1.0 to 2.0 with a trend to increase. (Picture 7).

Current liquidity ratio (current assets to short-term liabilities) shows sufficiency of a company’s assets to settle short-term liabilities.

Picture 7. Changes in the current liquidity ratio average industry values of the TOP 1000 in 2016-2020.

Covering the five years period return on investments ratio average values of the TOP 1000 has been at a very high level with a trend to decrease (Picture 8).

This ratio is calculated as the ratio of net profit to amount of equity and long-term liabilities and demonstrates return on equity capital involved in commercial activities and the long-term funds raised by the organization.

Picture 8. Change in return on investments ratio average values of the TOP 1000 in 2016-2020.

The asset turnover ratio is calculated as ratio of sales revenue to average value of total assets for a period and implicates the efficiency of use of all available resources, regardless of the sources they were raised. The ratio shows how many times per year the full cycle of production and turnover is performed generating the corresponding effect in the form of profit.

Covering the five-year period values of the said business activity ratio showed a trend to decrease (Picture 9).

Picture 9. Change in asset turnover ratio average values of the TOP-1000 in 2016-2020.

Small Enterprises
95% of the TOP 1000 companies are registered in the Unified Register of Small and Medium-sized Enterprises of the Federal Tax Service of the Russian Federation. At the same time the share of their revenue in total of the TOP 1000 in 2019 is almost 53%, which is significantly higher than the national average in 2018-2019. (Picture 10).

Picture 10. Revenue shares of small and medium-sized enterprises in TOP-1000

Main regions of activity
The TOP 1000 companies are registered in 72 regions and are distributed very unevenly across the country. Almost 59% of the total revenue of the TOP 1000 companies in 2019 is concentrated in Moscow (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by Russian regions

Financial position score
Financial position assessment of the TOP 1000 companies shows that the largest part of them is in average financial position. (Picture 12).

Picture 12. Distribution of TOP-1000 companies by Financial position score

Globas Solvency Index
The vast majority of the TOP-1000 companies are assigned the highest and high Globas Solvency Index. This indicates their ability to repay their debt liabilities on time and fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies according to the Globas Solvency Index

Conclusion
Comprehensive assessment of touristic companies’ activities that includes the main indexes, financial indicators and ratios shows predominance of negative trends in their activities in the period from 2015 to 2020. (Table 1).

Table 1. Positive and negative trends, evaluation factors

Trends and evaluation factors	Share of factor, %
Dynamics of average net assets value	-10
Increase (decline) rate in average size of net assets	-10
Enterprises share increase / decrease with net assets negative values	-10
Level of capital concentration	-5
Dynamics of average revenue	-10
Increase (decline) rate in average size of revenue	-10
Dynamics of the average profit (loss)	-10
Increase (decline) rate in average size of profit (loss)	-10
Increase / decline in average values of companies' net profit	-10
Increase / decline in average values of companies' net loss	-10
Increase / decrease in average values of overall liquidity ratio	5
Increase / decrease in average values of return on investment ratio	-5
Increase / decrease in average values of asset turnover ratio, times	-10
Share of small and medium-sized enterprises in the region in terms of revenue exceeding 20%	-10
Regional concentration	-10
Financial position (the largest share)	5
Globas Solvency Index (the largest share)	10
Average value of factors share	-5,3

positive trend (factor), negative trend (factor)

(*) – the data in 2020 is provided for companies that reported to the Federal Tax Service of the Russian Federation before mid-April 2021.

Information agency Credinform represents a ranking of the largest travel agents. Companies engaged in sale of trips, tours, transportation and accommodation of individuals and businesses (TOP-10 and TOP-1000) with the largest annual revenue were selected for the ranking, according to the latest accounting periods in the Statistical Register and the Federal Tax Service (2018 – 2020). Then they were ranked by the net profit ratio (Table 1). The selection and analysis were based on the data from the Information and Analytical system Globas.

Net profit ratio (%) is a relation of net profit (loss) to sales revenue. It is an indicator of the level of sales revenue.

There is no standard value for this ratio. It is recommended to compare companies of the same industry, or change in the ratio of the specific company. Negative value of the ratio is indicative of the net loss, and the high one means the efficiency of the company.

In order to get the most comprehensive and fair picture of the financial standing of an enterprise, it is necessary to pay attention to all the combination of financial indicators and ratios.

Table 1. Net profit, revenue, net profit ratio, solvency index Globas of travel agents (TOP-10)

Name, INN, region, type of activity	Revenue, million RUB		Net profit (loss), million RUB		Net profit ratio, %		Solvency index Globas
	2019	2020	2019	2020	2019	2020
1	2	3	4	5	6	7	8
OOO SALYUT-TUR INN 7719469605 Moscow, activities of travel agencies	20,9	346,7	-0,4	18,9	-1,69	5,46	252 Medium
OOO AEROS TREVL INN 7708549087 Moscow, organization of business trips, fairs, conferences	1 048,5	532,3	23,4	16,4	2,24	3,08	208 Strong
JSC INTERCITY SERVICE INN 7704005657 Moscow, domestic and international tourism	455,0	271,8	19,8	4,8	4,35	1,77	194 High
LLC AIR CHARTER SERVICE INN 7706105350 Moscow, activities of travel agencies	235,5	283,3	-7,5	4,5	-3,17	1,60	269 Medium
RBT-CTM COMPANY LIMITED INN 7733538667 Moscow, activities of travel agencies	608,4	228,3	7,0	3,5	1,16	1,52	266 Medium
OOO AEROKLUB TUR INN 7702520780 Moscow, organization of corporate events in Russia and abroad	1 815,4	802,3	84,2	10,1	4,64	1,26	222 Strong
LLC Coral travel centre INN 7707778239 Moscow, tour operator in Turkey, Russia, Greece, Spain, Tunis	193,0	191,1	2,2	1,1	1,13	0,57	318 Adequate
S 7 TRAVEL RETAIL LLC INN 7701607660 Moscow, domestic, international, inbound and outbound tourism	2 868,1	2 032,7	260,1	0,5	9,07	0,02	251 Medium
OOO OPERATOR BG INN 7727281607 Moscow, activities of travel agencies	390,5	268,6	199,1	-52,9	51,00	-19,69	324 Adequate
LLC TT-TRAVEL INN 7714775020 Moscow, activities of travel agencies	25 568,3	7 701,5	317,5	-4 021,0	1,24	-52,21	306 Adequate
Average value for TOP-10	3 320,3	1 265,9	90,6	-401,4	7,00	-5,66
Average value for TOP-1000	66,13	29,3	3,8	-3,5	6,78	-1,35

improvement compared to prior period, decline compared to prior period

All TOP-10 companies are located in Moscow.

The average values of net profit ratio for TOP-10 and TOP-1000 companies are negative and lower than the values in the prior period. Six companies decreased the values in 2020, whereas in 2019 the decrease was recorded only for three companies.

At the same time, only two companies could increase the revenue and net profit in 2020.

Thus, 2020 appeared to be significantly less successful for TOP-10 companies comparing to 2019. In average, the revenue decreased almost by 62% and net profit - by more than 5%. Companies with the largest revenue for 2019 bear the biggest losses.

In general, the growth of the average industry values of net profit ratio was observed 5 times within the last 10 years (Picture 1). The highest value was registered in 2019, the lowest – in 2010. In 2020, the ratio is forecasted to have the negative value.

Picture 1. Change of average values of net profit ratio of travel agents in 2010 – 2019