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WebBeds wake up Webjet’s profits

THE future is looking bright for Webjet, with the online travel brand releasing top-line financials this morning which show its WebBeds division is propelling the business to healthy profitability. Adam Bishop reports.

Overall, Webjet company enjoyed a 39% bump in revenue and a 35% boost in TTV for the six months to 30 Sep, rising to $244.5 million and $2.89 billion, respectively.

WebBeds accounted for the lion’s share of EBITDA during the period, raking in $89.9 million of the company’s total $102.1 million for the six months, which Webjet said had taken WebBeds to 50% higher booking volumes than it enjoyed pre-pandemic.

The division has been outperforming the market since May 2022, with a large book of new client wins and organic growth spurring strong forecasts moving into the second half.

Historically, WebBeds has found its greatest booking purchase in the European market, however more recently the hotel marketplace has seen healthy growth in other markets – especially the Asia Pacific region which Webjet stated was its “greatest opportunity” for future sales growth.

Elsewhere in the business, Webjet enjoyed healthy gains in its OTA arm, with EBITDA growing by 24% to $26.6 million, while bookings also increased by 8% to 692,000 – now only 15% shy of pre-pandemic levels.

The OTA also racked up a 17% gain in TTV, which rose to $716 million, while revenue surged by 18% to $61.2 million.

Webjet said its success in growing the OTA arm was partly attributable to a focus on higher margin products and unearthing alternative revenue sources to offset lower air commissions.

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