Webjet explores split of WebBeds and Webjet B2C via demerger

Webjet explores split of WebBeds and Webjet B2C via demerger
Edited by Travel Weekly


    Webjet Limited announced today that it is exploring a separation of its two leading travel divisions WebBeds, the global bedbanks business, and Webjet B2C (Webjet OTA, GoSee and Trip Ninja), via a demerger with two companies expected to be listed on the Australian Securities Exchange.

    The demerger, if pursued and completed, will create two standalone ASX-listed companies with leadership positions in their respective industries and with their own distinct operating profiles, strategies and growth opportunities, a statement from the broad of directors said.

    “Having carefully weighed up the arguments for and against a demerger, the Board sees significant value enhancement through a potential separation of our two industry leading businesses and brands,” Webjet Limited Chair, Roger Sharp said.

    “Our B2C businesses will continue to deliver organic growth through the shift to online, while separation will support our WebBeds business in its relentless focus on achieving scale in all markets, in a post pandemic landscape characterised by a reduced number of smaller competitors.

    “Both Webjet B2C and WebBeds will be well positioned to offer enhanced solutions to their respective customer bases, which is particularly important in the context of an increasingly complex travel booking ecosystem.”

    • WebBeds is a global B2B travel distribution business with a disruptive business model, a large total addressable market and considerable growth opportunities through enhancing scale in all geographies, ongoing investment in technology and targeting new customers, travel suppliers and markets.
    • Webjet B2C comprises the company’s B2C businesses:
      (1) Webjet OTA – an Australia and New Zealand focused consumer digital travel business with iconic brand heritage, the #1 OTA position and growth opportunities in international flights and complex itineraries;
      (2) GoSee – a global motorhome and car rental ecommerce site; and
      (3) Trip Ninja – a technology company providing solutions for complex travel itineraries.

    The decision to explore the separation reflects the attractive but divergent growth opportunities available to the respective businesses and that independent capital structures will enable both divisions to make optimal investment decisions on their own.

    If a demerger is implemented, both divisions are expected to benefit from:

    • Separate management teams focused on distinct operating profiles and competitive landscapes;
    • Independent capital structures, streamlined capital allocation decisions and strong balance sheets to
      support growth;
    • A stronger ability to respond to the continuously evolving travel industry and consumer travel preferences; and
    • Access to new investors with different investment preferences.

    Roger Sharp (left) and John Guscic at the 2023 Webjet Limited AGM in Melbourne.

    Webjet Limited managing director John Guscic said its B2C and B2B divisions are increasingly diverging and have minimal operational co-dependence.

    “B2C has seen the structural shift to online accelerate since the pandemic, leading to significant growth in market share and we continue to see significant growth opportunities for WebBeds as a genuine player of global scale underpinned by our three pillars of growth: growing our existing portfolio, new customers, supply and markets, and driving improved conversion.”

    Timing and next steps

    Any potential transaction is expected to complete during Webjet Limited’s FY25 financial year and the company will provide further updates on timing and structure.

    Any decision to demerge will be subject to final Board approval, third party consents and regulatory and shareholder approvals.

    Latest News

    • Cruise

    Cruise Traveller’s new Scottish Highlands cruise tour package

    Australian small ship cruising specialist, Cruise Traveller, offers a 20-night land and sea holiday in the UK aboard the Lord of the Glens. The tiny cruise line’s 52-guest boutique vessel, Lord of the Glens, is purpose-built to explore the intricate waterways and lochs of the Scottish Highlands. It boasts a rich, traditional ambience with polished […]

    • Cruise

    Celebrity Xcel’s keel-laying ceremony in France, with 2025 inaugural sail planned

    Construction has commenced on Celebrity Cruises’ next ship, Celebrity Xcel, with a keel-laying ceremony at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France. An Edge Series ship, Celebrity Xcel will set sail in autumn 2025, with several new yet-to-be-revealed offerings. At the ceremony, Jason Liberty, president and CEO of Royal Caribbean Group (RCG), the parent […]

    • Destinations
    • Tour Operators

    Globus unveils nine new independent tours for 2025

    Coach touring brand Globus has unveiled nine new independent tours for 2025, from Bangkok to Bali and Abu Dhabi to Nepal. “With Globus Independent tours, our guests are free to enjoy the many benefits of touring, untethered and unscheduled,” APAC head of marketing, Globus family of brands (GFOB), Chris Fundell said. “Providing hand-picked hotel accommodations, […]

    • Hotels

    Mandarin Oriental Hotel Group opens Mandarin Oriental Mayfair

    The Mandarin Oriental has opened a second property in London, the Mandarin Oriental Mayfair, in the heart of historic Hanover Square. Designed by internationally renowned Rogers Stirk Harbour and Partners, the hotel is the first new build in Mayfair in over a decade. Bringing a modern architectural approach to one of London’s most storied squares, […]

    • Hotels

    Outrigger Reef Waikiki Beach Resort unveils Coral Kids Club

    On top of its US$85 million (AU$150m) transformation, Outrigger Reef Waikiki Beach Resort’s new Coral Kids Club provides an engaging activity centre for kids. Designed for keiki (children), ages 5-12, the activity centre offers daily cultural workshops with hands-on activities rooted around the Āina Guardian workbook. It was developed by Candes Gentry, co-author of Eat […]

    • Hotels

    Minor Hotels announces fourth franchised hotel

    Minor Hotels has added to its portfolio of more than 500 hotels in operation after signing Oaks Melbourne on William Suites as its fourth franchised hotel. The 220-room apartment hotel is the third Oaks property signed under a franchise model after the Oaks Toowoomba and Oaks Townsville Metropole. The proven success of these properties highlights […]

    • Destinations

    Phuket unveils cutting-edge medical facility

    Minor Hotels has announced Layan Life by Anantara, a world-class medical wellness facility that is set to elevate Phuket’s reputation as an international medical wellness destination. The new facility is set across 1,767sqm within the grounds of Anantara Layan Phuket Resort and is set to open in Q3 of this year. It offers a blend […]

    • Events

    Out West Piano Fest comes alive in Bathurst

    The three-day symphony of the senses comes back to Bathurst, at picturesque Blackdown Farm, as Out West Piano Fest returns 25-27 October. Located just five minutes away from Bathurst NSW is a pastoral heritage, art, and culture. It was also once home to Australian artist, Tim Storrier. The extensive gardens in full spring bloom offer […]

    • Attractions
    • Cruise

    Japan in Bloom with Cruise Express

    Send clients out to experience the best of the Land of the Rising Sun with Cruise Express and their Japan in Bloom expedition, a 21-night adventure. As interest in Japan hits an all-time high, Cruise Express is pleased to announce its ultimate Japanese bucket list trip. This adventure is geared for Australians wanting to tick […]

    • Road & Rail

    Explore Uzbekistan with Golden Eagle Luxury Trains

    Golden Eagle Luxury Trains presents an exclusive itinerary to Uzbekistan with ensuite cabins, a personal cabin attendant, and off-train excursions. Travelling aboard the opulent Golden Eagle train, with ensuite cabins, guests will dive deep into Uzbekistan’s spectacularly global cultural identity. A personal cabin attendant, all porterage and gratuities and all off train excursions are included […]