Business Overview and Segments
Webjet is a well-known service in Australia, but it actually has two segments;
- Consumer Segment (Webjet) – this is what we all know Webjet for. This part of Webjet is Australia’s largest online travel agent (OTA), processing 50% of all online booked flights in Australia. It allows you to compare airfares, and customers pay a $29 fee for the service.
- Business Segment (WebBeds)– this is a new business venture for Webjet, having only started it in 2013. What they do here is they act as an online middle-man connecting hotel owners looking to fill vacant rooms, with travel provider companies looking for accommodation for their clients.
Brand – Australian’s trust the Webjet brand for spending large sums of money on buying their flights online.
Network Effects – the more hotel owners WebBeds has, the more accommodation it can offer its travel provider clients, the more hotel owners will want to join WebBeds to reach a larger audience, the more this will attract travel providers looking for the biggest range of options.
Key Facts and Figures
| Risk of Bankruptcy | Low |
| Last Year’s Growth | 41% (High) |
| ROIC (Company Quality) | 14% (Moderate) |
| Free Cash Flow Margin (Company Strength) | 21% (High) |