Webjet flying with record travel booking numbers

New financial results from global digital travel business Webjet (ASX: WEB) have again highlighted the industry’s significant rebound after the chaos of the COVID lockdowns.

The company today revealed it had hit new record levels for Webjet bookings and Total Transaction Value (TTV).

The company also reported that its FY23 Group Bookings and TTV were above pre pandemic levels as industry analysts continue to forecast a major rebound for the travel sector.

Significantly, the company’s FY 2023 underlying EBITDA of $134.8 million highlighted a $150 million reversal on its FY22 underlying loss of $15 million.

Big turnaround

Managing director, John Guscic, said Webjet has emerged from the pandemic better placed to deliver growth than even before.

“Even though travel has yet to fully return to what it was, in the second half of FY23 we saw Group Bookings, TTV, Revenue and EBITDA all ahead of where they were when the pandemic hit.

“This reflects all the efforts we took to make sure we would not only recapture demand when travel returned, but also further accelerate our growth profile.”

Mr Guscic highlighted the input of the company’s WebBeds business as a major influence in the dramatically improved results.

WebBeds a key component

He said WebBeds is more profitable than it ever has been, with the company preparing to take advantage of growing customer interest with some proposed upgrades.

“By continuing to find ways to get closer to our supply partners and better understand client preferences, in the longer term we believe WebBeds can deliver $10 billion TTV while continuing to deliver best-in-class EBITDA margins.”

Webjet is also focusing on further growth with its Webjet online travel agency (OTA) business within the international flights market.

Mr Guscic says OTA is benefiting from reduced the number of competitors, identifying the companies Trip Ninja product as an important component for future growth.

Webjet is confident that FY24 will also be a strong year. It has confirmed that WebBeds Bookings and TTV are up more than 35% and 40% for the same period last year.

New studies forecast continuing online growth

A new report from international research firm, Global Data, has forecast that the online travel market will be valued at US$2.3 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% by 2030.

Global Data identified the proliferation of mobile devices, improved network connectivity, and rising disposable income are some of the prime factors responsible for the growth in the online travel booking market.

It noted that while the travel and tourism industry experienced a significant drop in revenue during the pandemic outbreak, the global crisis also played a role in compelling consumers to use online services, which is anticipated to benefit and accelerate the uptake of online travel in the future.

Growing traveller confidence

A recent survey by Booking.com found that travellers were growing in confidence that things were on the improve with regard to travel restrictions. Approximately 72% of travellers mentioned that travelling will ‘always be worth it’ – showing high optimism despite minor restrictions.

The survey reported that in South East Asia, 50% of travellers from Singapore, Malaysia, Indonesia, and the Philippines expressed their intention to travel in 2023.

Here are some of the trends travel businesses should look out for.

Australia number one for wellness tourism

According to a Wellness Tourism Initiative survey, Australia is ranked first as the world’s most desirable wellness tourism destination.

The top ranking has been linked relate to Australia reputation for providing fresh local produce, unspoiled nature and wildlife, and world-class wellness accommodations for tourists worldwide.