Bookings stagnate as Wotif faces the "end of an era"
Wotif has again flagged the need to expand beyond its hotel booking roots as it warned that trading conditions remain soft despite a rise in consumer confidence.
The online retailer said it had failed to see a bookings increase since the Federal election with any lift in public confidence yet to translate to sales.
Asia also continues to under-perform with any turnaround unlikely before the second half of the financial year, Wotif chief executive Scott Blume said.
On a more positive note, he told shareholders at the firm's AGM in Brisbane that accommodation sales for its rest of world properties have stabilised and are expected to be marginally ahead in the first half of the financial year. Its flights business also continues to “outperform”.
“If current trends continue we would expect our flight TTV to increase by over 30% over the first half of the prior year,” Blume said.
He declined to provide profit guidance for 2014 but said the company would do so when it releases its first half results.
Meanwhile, dynamic packaging on Wotif.com is expected to go live this week which will enable consumers to buy flights, hotels and, at times, transfers and other products.
The launch will provide new competition for bricks and mortar agents in the package arena, a historic product stronghold for traditional retailers.
It also signals the latest phase in the evolution of Wotif which has stressed a need to expand beyond its core accommodation booking business.
“We have successfully negotiated very attractive air and land deals with our partners to ensure that our packages will be competitive and compelling for our customers,” Blume said. “This product builds on the success of the Sydney theatre package product where we had the opportunity to beta test the technology."
Wotif chairman Dick McIIwain told the AGM that branching out beyond its roots was vital for the company’s future as he declared the “end of an era” of double digit accommodation growth.
The slowdown marks “a turning point for the development of Wotif”, he said.
“The results in the 2013 financial year tell much about the current business. They show that the company’s core accommodation and Asian businesses have not produced the growth evident in the company’s early years,” McIIwain told shareholders. “It can no longer see itself as a single purpose accommodation booking transaction service.”
He conceded that the online accommodation market has “not reached its potential over the past few years”, citing the growth of bookings through traditional agents and the emergence of overseas players.
“The broader travel market in Australia offers Wotif an opportunity to be much more than an online accommodation matchmaker for accommodation houses and travellers,” McIIwain said.
Developing its flights business, dynamic packaging and alliances – such as those with Japan Rakuten – are all critical for Wotif, he said.
At the AGM, Blume also revealed that Wotif was close to finalising a deal with a new partner to provide improved content and pricing for the top 20 most popular global destinations for Australian travellers. The upgraded product is likely to go live in the second half of the financial year.
Asian product is also being improved with a soon-to-be-launch marketing campaign expected to drive an improved performance next year.
Latest News
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Globally-renowned chefs gather for Vivid Food 2024
As a human, we agree that food is a fundamental part of the human experience. Some might say the most fundamental.
Air New Zealand returns to Hobart and Seoul
If you notice an uptick in Kiwis making their way through the Mona, you know why.
European Waterways targets multi-generational families with ‘floating villa’ deal
The jury is still out on whether spending a week on a 'floating villa' with family is a hell or a paradise.
Luxury Escapes launches ‘sail away’ sale
Rest assured, you'll be getting your 'sails' and 'sales' mixed up for the rest of the day.
Rex-owned National Jet Express adds weekly charter between Brisbane and Orange
This is for mining and civil contractors, so please, put your holiday attire away.
Let the games begin. Viking introduces eye-watering benefits for the industry’s top 10 advisors
Did someone say 'trip to Venice'? Hold my coat, this one is far too good to miss!
Best friends or frenemies? What is the REAL relationship between sales and marketing?
We can all stop fighting over the corner office because our mothers were right - we are all important in our own way.
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.