Stefan Toderita, Edenred: Domestic tourism remained among the most accessed extra-salary benefits

Edenred celebrates, this year, 25 years of activity in Romania. During this period, the company has continuously adapted to respond to changing consumer needs, technological evolution, and economic and social changes, becoming the leading digital platform for services and payments in Romania, with 100% digital solutions for employees, companies, merchants, and administration, connected in a symbiotic ecosystem. We talked to Stefan Toderita, Strategy and Develpment Director at Edenred Romania, to find out more about the company and its projects and partnership.

How did 2022 end in terms of financial results? How do you predict the year 2023 will be?

The revenues of the Edenred Group at the global level registered an increase in all regions and for all business lines, compared to 2021, an evolution supported by the development of the portfolio of solutions, the creation of new partnerships and the expansion of the customer ecosystem.

In Romania, Edenred has consolidated its leading position on the employee benefits market. The first direction was the investment in improving the products offered. For example, the Benefit platform has been expanded with a dedicated section of wellbeing benefits, in partnership with SanoPass and ATLAS. We also added the Benefit Bucks service, developed in partnership with CashClub.ro, through which Benefit users can receive cashback of up to 7% for purchases at over 800 CashClub.ro partner stores.

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Edenred: The fringe benefits industry plays a vital role in driving digitalization

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Another direction in which we invested were the projects developed in collaboration with several partners, such as the integration of meal cards in the e-commerce platform Freshful by eMAG or the partnerships with BCR, Revolut and Raiffeisen Bank to facilitate companies’ access to Edenred products.

We wanted to be closer to the SME sector and, knowing the challenges and needs of entrepreneurs and managers in this area, we launched Edenred BIZTRO Club, a smart business hub for Romanian SMEs and entrepreneurs. Through the dedicated platform, www.edenred.ro/biztroclub, they have free access to resources and practical information for the establishment and development of the business and the well-being of employees. It is a long-term project that we plan to expand and consolidate this year.

And because we are talking about this year, in 2023, Edenred celebrates 25 years of activity in Romania, being both an opportunity to celebrate the evolution of the company on the local market and a moment to evaluate the experience and lessons of these years to outline the future. In our 25 years of activity, we have constantly innovated to respond to the ever-changing needs of consumers, technological evolution, and economic and social changes. Currently, Edenred is the leader of the fringe benefits market in Romania, with 100% digital solutions for employees, companies, merchants, and administration, connected in a symbiotic ecosystem.

Regarding the financial forecasts for this year, we are optimistic that we will maintain our growth trend, considering the evolution so far. We aim to continue investing in technology and the uniqueness of our platform, developing innovative solutions, and launching new products and services.

How many cards do you have in your portfolio now in total? How many cards have you issued for aid from the Romanian state to people in difficulty?

In Romania, Edenred serves more than 33,000 client companies, 1.5 million employees and 65,000 merchant partners. Through our products available in card form – Edenred Ticket Restaurant, Edenred Cadou, Edenred Cultural, Edenred Vacation – and through those available on the Benefit by Edenred platform, we provide employees and companies with customized solutions for a variety of needs in life day by day. Thus, we help employees increase their purchasing power, and we offer companies tools with tax facilities to attract, retain and motivate employees. At the same time, the network of Romanian merchants, Edenred partners, benefits from new customers, traffic, and volumes by accepting the products offered by us.

Regarding the social programs developed by the Government of Romania, we are glad to be involved in their implementation, because millions of people are helped to increase their income. We try to be a reliable partner and contribute to this process with the international expertise we have, and we are proud that these programs are seen as examples of good practice by the European Commission. If we look at the results of the social programs so far, we are talking about more than 300,000 elderly people who benefited from 12,000,000 hot meals through the “Hot Meals” program, 400,000 children who had the necessary resources (school materials and clothing ) to go to school through the “Educational Support” program and 2.5 million Romanians in situations of material deprivation or at risk of poverty, beneficiaries of the “Support for Romania” program.

What were last year and what are now the most requested cards by employers and employees? What are the most requested services (culture, sport, gift, etc.)?

Extra-salary benefits that are associated with a card are meal vouchers, holiday vouchers, cultural vouchers, and gift vouchers. In addition to these, Edenred offers a multitude of other flexible benefits available digitally on the Benefit By Edenred platform. We have noticed that a standard package of extra-salary benefits is no longer enough because employee preferences and needs are very varied. The main trend in this market is the flexibility of the package offered by the employer, and here we intervene with the benefits offered through the Benefit by Edenred platform.

If we look at the cards in our portfolio, Edenred Ticket Restaurant records the most volumes, with the meal card being the most valued extra-salary benefit by employees, followed by the gift card for special occasions, the holiday card, and the cultural card. The Cultural Card is, moreover, the last type of benefit introduced in the form of a card, in 2019, when the other types of cards already existed on the market. All categories are seeing steady growth year over year, reflecting the interest of employees and companies in such benefits.

In terms of flexible benefits, we see increases in telework, private pensions, wellbeing, and sports. Moreover, in sports, we expect to see an important increase this year, with the introduction of a new fiscal provision, which allows employers to offer access to various sports activities, within the limit of 400 EUR/year, being, at the same time, tax exempt.

Why did you decide to partner with Epicvisits? Is there customer demand for these types of vacations and experiences?

With the lifting of pandemic restrictions, we have seen an increased appetite for domestic tourism, a result generated by the effects of the lock-down that we have all felt. In 2022, this trend remained constant, being confirmed by the results of the annual Benefit study, an x-ray of the extra-salary benefits industry in Romania – domestic tourism remained among the most accessed extra-salary benefits, with holiday cards occupying third place, after meal cards and the gift ones.

In this context, wanting to be close to employers and employees who use our products and having constant dialogues with them, to find out what they need and what they want to improve their lifestyle, the partnership with Epic Visits came naturally and responds to employees’ need for unique, new experiences when planning their vacations.

Also, what we liked the most about Epic Visits is the team they have and the fact that they don’t just focus on the booking area, but on offering a whole experience to customers, such as pottery workshops, wine tastings or gourmet dishes, guided tours or even accommodation in special places, which is what we also wanted for employees who benefit from holiday cards or access to the Benefit by Edenred platform.

What development plans do you have for the next period? How badly are Edenred’s businesses affected by the difficult times we are going through? Do you think tourism and entertainment/cultural activities will be affected by inflation and declining purchasing power?

The services and products offered by Edenred support employees and companies, and this support is even more important in difficult economic times. Basically, we help employees increase their purchasing power and companies to attract and retain talent, while benefiting from tax advantages. In this way we are talking about wins for both parties: the pressure that most companies feel in terms of costs is reduced, and employees have access to basic needs, such as a healthy lunch or paying utilities, but also to activities that have a purpose to balance professional and personal life, such as the possibility of going on a unique vacation, the development of hobbies, access to health & wellness programs.