Technology

Webjet pulls plug on cruise sales business, actions 440-plus redundancies

Huntley Mitchell

Huntley Mitchell

Online travel company Webjet has resumed trading on the ASX, but not before detailing some harsh measures to mitigate the impact of the COVID-19 outbreak.

In an update to shareholders on Wednesday, Webjet said its management team had implemented a number of interim business initiatives to lessen the blow of the coronavirus crisis.

Among them are more than 440 redundancies, with the majority of remaining staff moving to four-day working weeks; along with reduced board and executive remuneration, with managing director John Guscic cutting his salary by 60 per cent for the 2020 calendar year, and forgoing a bonus for FY20.

Webjet also noted it was suspending Webjet Exclusives and closing its Cruise Sale Finder business, which falls under the company’s Online Republic division that it acquired in 2016 for just over $80 million.

According to the Cruise Sale Finder website, the business will cease operating from September this year and is no longer accepting new bookings.

Webjet reckons these initiatives, along with a few others such as a non-essential and marketing spend freeze, will deliver cost savings of roughly $13 million per month.

The company added that it has a few more tricks up its sleeve if the situation doesn’t improve over the next six months.

And, after announcing a $275 million equity raising on Wednesday to help strengthen its balance sheet, Webjet revealed today that it now forecasts the raising to reach $346 million thanks to strong demand from new and existing investors, and is back trading on the ASX.


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Tourism

Travel Agents

Digital travel ad impressions up 40 per cent says Nielsen Ad Intel

Looks like your marketing team’s efforts are paying off, with ads views climbing dramatically in Australia following the most recent lockdown.

Share

CommentComments

News

Tourism

OMICRON: WHO urges those over 60 to cancel travel plans as SA tightens restrictions

The UN health authority warned countries that blanket bans don’t work, while an Aussie epidemiologist says the government’s current restrictions won’t make much difference.

Share

CommentComments

Wholesalers

Planeterra launches holiday fundraising for community tourism

Not sure what to get your colleague for Secret Santa? They’ll be hard-pressed to complain about a donation in their name to support community tourism projects.

Share

CommentComments

Destinations

WATCH: Rebel Wilson stars as glam castaway in new Tourism Fiji ad

The Aussie actress channels Tom Hanks’ Castaway in this latest campaign for Tourism Fiji, However, we’re not convinced Hanks could pull off the metallic dress as well as Wilson does.

Share

CommentComments

Hotels

Club Med opens first Canada property, reveals plans for new Utah ski resort

Those who enjoy the ease of an all-inclusive resort stay will be stoked to learn about Club Med’s latest spate of winter wonderland offerings.

Share

CommentComments

Cruise

Norwegian Cruise Line unveils its largest deployment in history

Batten down the hatches because NCL has released its 2024/25 line up including brand-new homeports in Haifa, Israel and La Romana, Dominican Republic.

Share

CommentComments

Aviation

US flight attendants rush back to self-defence in face of rising passenger unruliness

In order to avoid a drunken sky-high fight club breaking out, crewmembers are taking to the studio to keep the peace.

Share

CommentComments

Hotels

Accor introduce global portfolio of boutique hotels and luxurious resorts, Emblems Collection

A new line of luxury hotels and resorts are what we need to bring the world out of the global pandemic and into an opulent fantasy that only a Disney princess could think up.

Share

CommentComments

Tourism

Bali had 6.3 million tourists in 2019, in the first 9 months of 2021 it had 43

With tourism rates in Bali so low, we imagine that even Schapelle Corby would be gladly welcomed back.

Share

CommentComments

Destinations

Tourism

Destination NSW Launches Vibrant “Feel New Sydney” Campaign

Destination NSW unveils “Feel New Sydney” work. Just don’t expect the locals to be pleasant or let you in when driving.

Share

CommentComments

Aviation

Destinations

News

Tourism

Fiji welcomes first flight of international visitors in 20 months as borders open

Sydneysiders touched down yesterday to a big bula welcome almost two years in the making!

Share

CommentComments

Events

Tourism

I Love New York launches new training course for travel agents. Enter for your chance to win!

Calling all Aussie travel agents! Complete the training by the end of January 2022 and you could win a New York-style “za” for you and your team!

Share

CommentComments