Media Release
Positive Growing Internet Transaction Business, Not A Dot Com
13th June 2000
Regardless of knee jerk reactions within the dot com equity market, the use of the Internet for commerce is rapidly increasing, particularly within the travel sector. Managing Director of leading online travel provider, WEBJET, Mr David Clarke, says that the robust nature of the travel Internet transaction market means that WEBJET's business strategy is going to plan, and fast gaining momentum.
"WEBJET is steadily moving forward towards its goals and we would not rule out looking beyond Australian shores to achieve them. Our business plan was drawn up on the basis of forecast growth in both the Internet commerce market, and travel Internet distribution expansion. Our long-term strategy is based on this, not the dot com equity markets - they are of secondary significance to us," said Mr Clarke.
"The dot com market may rise and fall, but this will have no impact on WEBJET. We are not merely running a share price, we are building a solid company that uses the Internet as a profitable and effective distribution medium that we believe will deliver long term and sustainable shareholder value.
"WEBJET is not trying to realise short-term gain from the old bubble like a dot com. We are not pursuing ad banners or building endless email databases. We are in the business of transaction profit. Basically, our revenue is derived from the same traditional methods used by non-internet based travel providers, however the channel for transaction differs.
"We welcome recent news coverage that Flight Centre will be entering into Internet travel distribution which suggests that traditional travel distribution channels may not remain the dominant force in the industry.
"I am not surprised by this turnaround which is also further supported by the recent adoption rate by large players to come online. We question, however, whether hybrid models or 'internet add-on' models are the way to go. We believe pure cyber will prevail," said Mr Clarke.
"WEBJET's strength stems from our success in raising adequate funds to pursue a solid strategic business plan, a comprehensive marketing and advertising campaign, and the establishment of recent alliances and initiatives.
Launched in April, WEBJET's advertising campaign was implemented to build awareness of the company's fledgling brand. On a number of occasions in the last month, the site has outranked competitors and achieved number one in terms of site hits according to Sinewave Australia.
In recent times WEBJET has launched a loyalty program for shareholders with more than 20,000 shares; appointed Orica Chairman, Dr Ben Lochtenberg to the board as deputy chairman; appointed a Senior Business Development Manager; launched Webcam, an Australian first in interactive real?time travel customer service technology and WEBSURE, a world first in Internet security and insurance for travel sites on the web.
The company has also announced a number of strategic alliances including those with ANZ Banking Group; CGU Insurance; Primus; ISIS Communications; the UK's leading internet music provider, Maxishop; a large US based Internet travel player specialising in travel and entertainment packages, Funseeker Vacations; and a specialist in the business travel market, NGT Conferences and Incentives.