One of the criticisms of Webjet has been that people are not going to pay Webjet a commission for finding the best value flight (hotel or whatever) when they can go directly to the Qantas, Virgin or whoever and do it themselves minus the commission. In effect, they run a business with a lot of "leakage".
This is a fair enough comment and rational observation - nevertheless it's wrong. I know because I own many online websites and know that people are very happy to pay and not ask questions. The ones that do complain are a very small fraction. The ones that Webjet will "leak" make up a tiny fraction of their visitors.
Nevertheless, it is extremely encouraging to see management actually addressing this issue. In the upcoming advertising campaign to hit the TV, they are focusing on their "Stay Then Pay" angle.
This allows customers to book a hotel and pay only after they complete the stay - meaning they will have to pay the full cost of the hotel (plus Webjet's commission) after their holiday is over. This is clever as it hides the fee until after and people are quite happy to pay the extra commission for the convenience for paying later.
WEB Price at posting:
$2.27 Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)