Asia drags down Wotif as profits slide

Asia drags down Wotif as profits slide
By admin

A dismal performance in Asia dragged down Wotif in the first six months of the financial year as it reported a 5% fall in net profit after tax to $27.5 million.

The decline in Asia offset what it described as a "modest" 1% revenue gain in its Australia and New Zealand accommodation business and "solid" 11% rise in flight sales.

Wotif blamed the profit decline on a 6% rise in total operating costs as a result of increased marketing, web maintenance and increased staffing levels.

"The results reflect a combination of factors and mixed performance by the individual lines of business," recently-appointed Wotif chief executive Scott Blume said. "Both Australia and New Zealand accommodation and flights and other were positive performances in a generally lacklustre domestic retail environment and given the continuing strength of the Australian dollar, which continues to stimulate international travel."

But these were offset by a sharp 19% fall in revenue from Asia and the rest of the world.

Group accommodation total transaction value (TTV) fell 1% to $532 million with room nights tumbling 4% to 3.5m compared to the previous corresponding period.

Flight "and other" TTV climbed 11% to almost $63m, with flights alone contributing $59.9m, up 14%.

Wotif said a phased increase in supplier commission to 11% was on track.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]