Despite the difficulty during the pandemic for companies in the tourism industry, Webjet managed to make it through.
👉 Background: Webjet Limited is the ASX listed travel business that was founded back in 1998. It has two divisions - Webjet, the online travel agency and WebBeds, which sells hotel rooms to travel agents and airlines.
👉 What happened: It has been a tough couple of years for companies in the tourism industry. But now Webjet has turned cash-positive for the first time since before the pandemic.
👉 What else: And that's not all, Webjet has also managed to double its market share. So now, it's expecting a positive cash flow of over $100 million in just the first half of FY23. Talk about turning things around.
💡 The travel industry experienced a ‘survival of the fittest’ like no other industry during COVID.
💡 98% of travel agents said their revenue had dropped by 75% when COVID restrictions kicked in. And sadly, many of the 2,600 travel agencies around Australia were forced to shut down.
💡For travel agents that were able to survive (like Webjet), this became an enormous opportunity. During the down time of lockdowns, it became more efficient, more profitable and managed to gain some sweet sweet market share.
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