Media Release
Webjet Welcomes Zuji To Australia
10th July 2002
Webjet today extended a warm and sincere welcome to the new Internet travel operation, Zuji, which launched in Australia this week.
Commenting, Webjet's Managing Director, David Clarke, said "We are pleased to see a responsible competitor emerge and, particularly given the structure of the airline ownership of Zuji, means, amongst other things, that our assumptions relating to sustainable growth of Internet travel are being validated by airlines. Zuji, on the assumption that it actively markets its products, will ensure that the general traveller awareness of the benefits of using the Internet is enhanced and, against the base where Qantas, Virgin Blue and ourselves and others have already established significant consumer credibility, we see this as a further welcome accelerant.
"Clearly no one invests the sort of significant capital which Zuji has so far spent without strong confidence in economic return and we also see that as a strong validation of our business plan.
"In many ways the interesting thing about Internet travel in Australia is that we are not seeing a proliferation of small players: we are actually seeing the development of strong and significant sites and the Internet travel arena in Australia has avoided the proliferation and multiplication of minor players which have disrupted its development in some other parts of the world. It is largely mirroring the American experience of a limited number of key participants who compete strongly, responsively and deliver the consumer proper service and value.
"Webjet has no concerns whatsoever about airline supply or pricing arrangements which are, in any event, subject to very comprehensive and effective Australian consumer and competition regulations.
"It is our view that the physical agency industry will find itself under increasing economic pressure and threat as more and more consumers move to purchase travel on the Internet and we have no doubt that we will continue to compete vigorously and successfully. The market is starting to be defined and shaped in a way that we find very comfortable and encouraging. It effectively creates new and higher entry barriers. There seems little doubt that the Internet travel market overall is set to enjoy the exponential growth which has happened in North America and has seen the emergence of Internet travel entities of enormous size, to the extent that they rival or exceed the turnover size of physical travel retailers in Australia".