Media Release
Webjet Travel Services Aggregator (TSA) Builds Margin
10th February 2004
Webjet today announced indications of improved margins following the successful launch of its Travel Services Aggregator (TSA) on 14 January.
Commenting, Webjet's Managing Director, David Clarke, said: "Whilst it is still very early days and these numbers should not at this juncture be taken as an indication of an annualised position, we are extremely encouraged by the margin improvement which has resulted from a change in the mix of business and the introduction of transaction fees through our new TSA.
Whilst the mix of business can change due to seasonal factors and isn't necessarily going to be replicated over a full trading year, it is clear that the introduction of transaction fees has had substantial consumer acceptance and almost zero resistance, because of the enhanced comparative and booking ease of the new system.
Our early numbers suggest that gross profit margin if these conditions are continued has improved by the extent of one full percentage point, (or approximately 15% relative to its historical base).
The margin improvement is almost equally comprised of a mix of business margin change and the introduction of the transaction fees.
On current transaction volumes and if this margin is sustained it represents a contribution to bottom line of approximately $250,000".