An observation: Australia’s two leading online travel companies, Wotif and Webjet, have always gone about their business very differently, especially when it comes to marketing. Never has this been more obvious than in their respective half year results. Webjet increased its marketing spend by $2m to $6.5m on revenue of $28m approx, while Wotif cut marketing spend by more than $1m to $8.5m on revenue of $73m.
That means Webjet spends 23% of its revenue on marketing compared with 11.6% for Wotif. In terms of performance, Webjet is currently growing much faster than Wotif off a significantly lower base. An interesting contrast – I wonder how it will play out over time.