Wotif refuses to rely on domestic sales
Wotif chief executive Scott Blume has admitted he will only get one chance to improve the lacklustre sales of Asian product in Australia as he insisted the business will not rely on domestic bookings to improve earnings.
Blume reiterated previous observations that Wotif has historically been poor at marketing short haul destinations to its Australian client base.
He said the expansion of Asian properties during the year will ensure the right product is in place for a fresh marketing push in Australia.
Wotif revealed this week that Asia and Rest of World revenue declined $3.3 million in the 2013 financial year with room nights sold tumbling 22%, or 800,000 nights. Improving that performance is among the central strategic pillars for the retailer, Blume said.
While Wotif has been “spectacularly successful” in building an Australian operation with great brand awareness, it has been less proficient in expanding beyond local accommodation, he said.
“I think it’s fair to say we have done an average job of talking to our existing customer database about flights, although we have made significant improvements on that, and about international accommodation,” Blume said. “If a family of four wants to go to Phuket, they don’t think about Wotif.
"We have not done a good enough job of leveraging our customer base and letting them know we have great [international] deals."
The launch of dynamic packaging to short haul destinations this financial year, along with “a decent marketing and communications” push will help solve that issue, he said.
“Part of the reason for growing the Asian inventory over the past six months is to make sure we have the content right when we start to market,” Blume explained in a call with analysts. “The one thing I don’t want to do is go to market and have average content. That doesn’t make any sense."
He said he would only get "one chance" to successfully sell the product in the Australian market.
“Part of the success of Wotif is the incredibly loyal and sticky customers we have. I have to make the experience on other lines of business as good as the experience they get in the accommodation space domestically," Blume said.
Historically, Wotif has relied on a low value dollar to drive domestic bookings and increase revenue. But Blume said he was not about to wait for domestic bookings to “turn up”.
“There are so many things we can do in the business. I am not going to sit here and wait for Australian consumers to do more domestic travel,” he said.
Wotif said it has yet to see any domestic bookings upturn as a result of the weakening dollar.
Pictured: Phuket, one of the overseas destinations Wotif will start to market to its Australian customers.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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