chart and comments, page-5

Ecto

I wouldn't worry about the director selling; sometimes directors just need some cash to fund their flashy life-styles!

I have been following wotif since mid $3 and the announcement of the acquisition of GoDo is yet another example of what IMHO is a carefully constructed plan to dominate the online travel space, particularly in Australasia.

GoDo is aimed generally at getting the punters to buy activities or attraction tickets on-line, either when they are at a holiday destination or prior to getting there. When you take in to account that WTF purchased travel.com.au and asia web direct in the last year or so, and add to that WTF's dominant position in on-line accommodation sales in various parts of the world, then you start to see the big picture.

Travel.com.au gives them the capacity to sell - among other things - airline tickets, wotif.com for accommodation and now GoDo for all the things you might consider doing when you get to where you are going. The AWD acquisition allows for further exposure in the Asian market which will most like explode in the next ten years or so.

When WTF only had their accommodation site, they were getting to a point where the proliferation of so many similar offerings meant that they could almost certainly only lose market share going forward. They had, again IMHO, the following options to continue to grow their busines;

1. acquire direct competitors
2. find other related products to sell on their site
3. acquire other sites already set up to sell other things
3. raise the commission they charge properties to sell (10%) via their distribution channel
4. open their booking window to successively longer time frames

Of these options, the only one they haven't done is raise their commission level, a move that would be sure to lead to a loss of market share in their core business area.

I believe the term may be 'vertical integration'; describing the ability to get everthing you want for a holiday from the one company. I reckon if you watch, then eventually you will be able to buy all those things in a visual environment similar to the very popular wotif.com accommodation site.

However, as a chartist, all this commentary may just put you to sleep! LOL. My message is, while the ups and downs are certainly of interest, I think WTF warrants thought as a keeper. As always your own approach and research are paramount, but I thought it might be of interest to hear a bit of background noise on one of my little favourites!

Cheers
BB09