Wotif raises supplier commission

Wotif raises supplier commission
By admin

Wotif.com chief executive Robbie Cooke yesterday addressed shareholders for the final time and signed off by announcing the company will lift commission in each of the next two years.

From January 1, base commission to be paid by suppliers will rise by 1% to 11% with a further 1% increase to kick in from January 2014, he told the company’s annual general meeting.

Cooke, who will stand down as chief executive at the end of the year, said the move was “necessary”.

“Post 2014 this will see Wotif.com remain as one of the world’s lowest cost online travel agencies for suppliers,” he said. “However, the increased commission is necessary to enable us to continue the reinvestment in our business on initiatives necessary to drive sales performance for our partners, and acknowledges that we are operating in a global market place.”

Wotif is regarded as having one of the lowest commission rates for suppliers.

Cooke said the first quarter sales performance has been in line with 2011/12. If the trend continues, first half profit will be in the “vicinity” of last year, he said.

Wotif chairman Dick McIlwain said the search for a replacement for Cooke is ongoing with the board “carefully and systematically” reviewing interest from a number of candidates.

An announcement is expected before the end of the year.

Meanwhile, McIlwain defended Wotif’s Asia business which some analysts believe has held the group back.

He said the company has “re-engineered” the operation with the number of hotels in Asia growing from 5,900 to 8,200 and its newsletter circulation rising from 130,000 to 375,000.

“It often escapes attention that our sales of room nights in Asia contribute 12% of our total room night sales,” McIlwain told shareholders.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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