If you thought the Webjet name was already a major force in the travel space, be warned… it has designs on growing bigger and better – even if it may look a little different.
In an interview with Karryon, Webjet B2C CEO Katrina Barry says that the potential separation of Webjet Limited’s two leading travel divisions, Webjet B2C and WebBeds, is key to that growth.
Not only would a demerger create two standalone companies – Webjet B2C and Webjet B2B (WEB Travel Group) – but also “an incredible opportunity for us, for B2C, to pursue our strategic priorities and a growth agenda”, Barry says.
Shareholders will vote on the proposed demerger on 17 September.
“B2B’s pretty much been the focus for the last few years – and had the majority of capital allocation,” Katrina says.
“And B2C is a gem, consistently delivering business. But now we have the opportunity… to invest in its next growth horizon. So it’s really the focus of a dedicated team, a dedicated board, a dedicated balance sheet, and we’ve got lots of opportunities… and now incredible financial resources that we want to invest in.
“Each business has very different strategic focuses and divergent growth opportunities. And this is, really giving both sides the ability to pursue independent strategic priorities.”
But it’s also about trimming the fat of each business.
“One thing I know about strategy is what you don’t do is most important. You need to singularly focus and pick where you want to play, what you want to focus on, and what you want to make yours. And that’s the most important thing about strategy, is choosing what you don’t do,” Barry explains.
“As a combined business, we have far too much opportunity, and as two single businesses, that narrows that focus and allows us to really align our very different, unique assets.”
And all of this will add up to a better overall experience for consumers, says Barry.
“The one thing we hope to do is actually improve that experience, improve their choice and their convenience.”
“Webjet’s always been delivering that wonderful matrix that allows you to mix and match your airlines, get that 20 per cent discount on your hotels, and offer a very broad variety of travel products and purchases. We have some really significant areas that we want to invest quite a bit of time… and that would mean better things for our customers.”
Part of this strategy would involve improving its membership proposition.
“So we’ve got about 5.5 million people interacting with us a month, whether they’re on our email database or whether they visit us on our website or follow us on social media, etc, and we realise that there’s an opportunity there to extend our relationship with them,” Barry states.
“So we’re definitely looking at membership, what we can do with our members program, and how we extend that. How do we look at that? How do we grow that loyalty? And we’ve got some hypotheses around adjacencies and verticals as well that we want to explore.”
“We’re doing strategy work right across our businesses right now, and if anything, we look forward to continuing to be the iconic Aussie and Kiwi brand that brings more choice and convenience to customers when they want to travel.”
Two weeks ago, Webjet Limited revealed its results for the 2023/24 financial year (FY24), showing record numbers across key metrics as well as a 400% increase in profit.
Last week, Webjet picked up the award for ‘Leading Online Travel Agency’ in Oceania and Australia at the World Travel Awards.
It’s also up for the award for ‘Most Outstanding Online Travel Agency’ at this year’s National Travel Industry Awards (NTIA).
