Wotif confident commission strategy will yield rewards

Wotif confident commission strategy will yield rewards
By admin


Online retailer Wotif said it has no plans to further increase commission levels as hoteliers prepare for their second hike in two years.

The Brisbane-based firm raised commission from 10% to 11% at the start the year and from January 1 will charge 12%.

Chief executive Scott Blume claimed the increases had “by and large” been well received by suppliers.

“People knew why we did it but there is no plan to take it further,” he told Travel Today.

Wotif has long been regarded as one of the cheapest forms of online distribution for hotels in a market where some retailers charge more than 20%.

The increase to 11% this year was largely responsible for Wotif’s Australian and New Zealand revenue climbing $4.1m in the 2013 financial year.

Blume said charging 12% still gives Wotif a significant competitive advantage over rivals which could be undermined if commission is raised to 13%.

“It’s the 64 million dollar question. How much headroom do you need to maintain the advantage with suppliers?” he said. “There is still a significant gap between us and the next guys and that brings us enormous opportunities and adds significant value. We are comfortable with 12% at the moment.”

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