Better Days Ahead at Wotif says Goldman Sachs

The recent poor result from Wotif.com – annual profit fell by 3.8% –  is an anomaly according to Goldman Sachs analyst Mike Younger, who is forecasting future annual growth of around 10%.  The company’s share price has fallen by almost 35% since early April. Goldman Sachs has a ‘hold’ on Wotif.

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4 thoughts on “Better Days Ahead at Wotif says Goldman Sachs”

  1. If all the OTA like Wotif etc keep trying to screw down their suppliers room rates to make them “more competitive”. All they are doing is lowering room rates, making businesses struggle and also lowering their commission and profit.
    Perhaps if they tried a little harder to help their suppliers, and get the room rates up instead of down their profits might improve.
    Online tourism is the only industry that seems to relish in screwing their suppliers.

  2. Michael – you are spot on. The international powerhouse OTA’s will be in the domestic market before Xmas at same or lower than local domestic commission structures… their arrival is long overdue but will certainly put the distribution power back into the hands of hotels and possibly mark the end of Wotif

  3. I disagree with Michael – How did people travel before the internet? The internet has opened up markets for hotels and OTA’s are a tool for consumers. Prices of markets are ruled by simple supply and demand, why do hotels charge $1000 a night on NYE’s and $100 a night when they can’t fill a room. Don’t seem them complaining when it’s busy? I’ll tell you what MIchael, go to 2 different flight centres and ask for a hotel room in sydney for the same night – bet you get 2 different prices – now there is a story!

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