17 Aug

Wotif model not broken Chairman

first_imgSource = e-Travel Blackboard: N.J Witnessing a $2 million drop in profits after tax to $51 million does not indicate a problem with the Wotif model, chairman Dick McIlwain stressed. Speaking at the company’s Annual General Meeting (AGM) Mr McIlwain denied outsider “observations” that the company’s slow growth over the 18 months to June 2011 was linked to a breakdown in business.“This reaction invariably leads to an impatient rush to a judgement based on speculation about the future rather than a considered analysis of past performance and the opportunities for a company with a powerful market position to adjust, and even reinvent, itself,” he said. The chairman added that the company’s profit drop down to $51 million comes during the same three year period which saw “many enterprises, including land based travel agents, went backwards and are only now getting to where they were”.He said during that same three year period, Wotifs’ revenue grew 50 percent while land-based agents “were written off and their share prices trashed until they recovered recently”.Wotif chief executive Robbie Cooke added the year’s “economic cycle” did not help the online agency, with the strong dollar driving Aussies out of the country, leaving local businesses struggling.“The impact this has had on all participants in the local travel sector is self-evident – hotels, services apartment operators, holiday home owners, restaurants, theme park operators and domestic airlines – all, to varying extends, felt the impact of the ‘vanishing’ Australian and New Zealand ‘vacationer’,” he explained. “It has not been an easy time for any whose businesses rely on this domestic travellers and Wotif is no exception with the domestic break traditionally bring one of our key bookings sources.”last_img

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