New owner Expedia believes returns from Wotif.com will remain static until the Australian OTA’s business is completely shifted onto the Expedia platform, which is forecast to happen by June 30.
“We don’t expect to see a meaningful uptick in the performance of Wotif until we get that business onto our platform,” Expedia CEO Dara Khosrowshahi told analysts.
“We are making progress on that, we moved international traffic onto the brand Expedia platform in January, we do expect to get the rest of the business onto the platform in the first half of 2015.
“But in the meantime, you got a business that is undergoing a very significant restructuring on a base momentum that is declining.
“So you’ve got a bit of a headwind certainly versus what you would have seen more publicly available.”
He warned that a weaker Australian dollar will also hurt returns for the US based company.
“When we acquired Wotif that was a business that was facing some pretty significant challenges, again it’s going to see pretty significant FX headwinds as we move through 2015.”
Mr Khosrowshahi added: “We are essentially paying double technology cost right now, we are integrating the Wotif technology at the same time the Wotif stack is up and running.”