Media Release
Virgin's Announcement: Reduction Of Commissions
19th February 2003
Webjet today reacted to the announcement by Virgin late yesterday where it has stated its intent to reduce commission to its online e-tailers to protect its traditional retail agencies and its own web site.
Commenting, Webjet's Managing Director, David Clarke, said "We are very sad to read that Virgin's web site is so fragile that it needs protection. We are, however, heartened by Virgin's announcement that it feels it needs to protect its traditional physical retailer. Virgin is of course entirely correct in that assumption, given that Phocus Wright have predicted a trebling in online travel sales in the Asia Pacific region over the next three years and expect online sales to reach some $13b plus by 2004.
"Webjet considers this a major endorsement of its business plan.
"We assume, however, in all of this that commercial sense will ultimately prevail and that there are elements of Virgin's announcement which fall into the category of another publicity stunt and given that Virgin has demonstrated extraordinary acumen in building its business to its current level, we assume that the ultimate resolution of this position will be similarly well thought through and we look forward to working more closely with them to achieve that end."