Monday, July 24, 2006
Webjet's big numbers - profits up, charges too
SMH is reporting on the latest announcement from Webjet. Expecting full year profits in the A$3.2-3.4 range and cash reserves of A$23.1 (mainly for the S8 option sale). I am not impressed by the claim that "this is 330% above last year" as happiness is a low base. However I am impressed with their focus and profitability and even more impressed that they continue to attract customers even though they are charging more than A$20 in service fees on domestic fares. Their TSA technology is great at aggregating different carriers into a screen but it is still based on the same pricing and availability as going direct to the supplier or any of the other aggregator technology sites (travel.com.au and flightcentre.com.au for instance), none of whom charge anywhere near $22.75 (service charge on today's search on Webjet). The airlines charge nothing beyond credit card fees and travel.com.au and flight centre are in the A$6-7 range. I don't begrudge Webjet charging whatever they want but am impressed/amazed that customers are paying it.