Web Travel Group has reported a robust start to its first full financial year as an independent entity, following its demerger from Webjet in September 2024. Despite facing challenges in the first half of the year, the company has demonstrated strong growth in Total Transaction Value (TTV) and bookings, underscoring its strategic focus on long-term expansion.
Mixed financial results with promising growth indicators
For the 12 months ending 31 March 2025, Web Travel Group reported a 22% year-on-year increase in TTV, reaching $4.9 billion. This growth was accompanied by a 29% rise in bookings in the first quarter of FY26.
However, the company faced declines in revenue, margins, EBITDA, and net profit, attributed to increased expenses from planned headcount growth and technology investments.
In the first half of FY25, WebBeds, the company’s B2B division, achieved a 25% increase in TTV to $2.6 billion and a 22% rise in bookings compared to the same period in FY24. Underlying Group EBITDA for this period was $70 million, reflecting an 8% decrease from the previous year, primarily due to higher expenses and margin pressures .
Strategic investments and market expansion
Web Travel Group’s strategic investments in technology and personnel are aimed at enhancing its global B2B marketplace. The company has focused on increasing the number of directly contracted hotels, which is expected to improve margins and booking volumes. These investments are anticipated to yield significant returns by FY27.
The company’s expansion into key markets in the Asia Pacific and the Americas has been successful, with these regions now accounting for 53% of TTV, up from 31% pre-pandemic. This diversification has strengthened Web Travel Group’s global presence and reduced reliance on European markets.
Outlook and long-term targets
Looking ahead, Web Travel Group aims to achieve record EBITDA in FY26 and remains committed to reaching $10 billion in TTV by FY30, with EBITDA margins around 50%. The company expects TTV margins to stabilise at approximately 6.5% in the medium term before increasing as its strategy to expand directly contracted inventory progresses.
Managing Director John Guscic expressed confidence in the company’s trajectory, stating, “We are targeting record EBITDA in FY26 and remain committed to delivering $10 billion TTV in FY30 at circa 50% EBITDA margins.”
He also noted that the company has not observed any significant decrease in travel to volatile regions such as the USA, with all inbound and outbound markets showing gains.
In addition to operational growth, Web Travel Group announced a $150 million on-market share buyback to maximise shareholder value and reduce potential future dilution from the company’s $250 million convertible notes due in 2026.
Despite short-term challenges, Web Travel Group’s strategic initiatives and market expansion efforts position it well for sustained growth in the global B2B travel sector.
