Webjet Australia Grew Revenue Tenfold in 8 Years: Now It Gets Tough
Photo Credit: Luxury Lodges of Australia. Domestic travel is rising but international trips rising faster. Luxury Lodges of Australia
Skift Take
Webjet Limited has risen as a major online travel agency in Australia and the No. 2 bedbank player globally. But stiff competition among online players down under, a slowdown in cruise sales, and low bedbank margins will keep it on its toes.
Business has been soaring for Webjet Limited, which rose from a $200 million to $2 billion company in the last eight years under the leadership of managing director John Guscic.
The Australian-listed digital travel company, which operates wholesale and consumer businesses, reported a 54 percent increase in total sales to $2.1 billion in fiscal year 2018. Earnings rose 71 per cent to $62.3 million.
Guscic told Skift in an interview there are “huge runways of growth ahead” for both sectors. The B2C arm, comprising Webjet.com.au and Online Republic, will continue to outperform the market by more than three times in fiscal year 2019, while the B2B bedbank, WebBeds, five times the market rate, according to Guscic.
Observers however said it won’t all be blue skies.
Australia’s online travel space is competitive and Webjet’s website traffic is still behind Expedia, according to year to November 2018 data by SimilarWeb, which tracks website performance.
Expedia.com.
