i attended the AGM and was suitably impressed with the management team. They are well aware of the problems facing the industry. They believe that they are well poised to take advantage of the decline of the bricks and mortar tarvel agents such as flight centre. The high over heads are killing them in this retail environment. The growth of companies in the US such as expedia see my previous post for article, indictes that there is a huge potential for this online business. Also they believe that airlines will stop paying commissions and that travel agents will have to charge fees to make a living. Webjet are already charging fees and this accounted for their profit recently announced. There recent huge growth in sales is very very good for their profit this F/Y. They also believe that once the airlines stop paying then they will lose the loyalty of the existing agents. Then they will be forced into buying 'shelf space' at travel agents shops and this will eventually leave the industry charging fees to the client and getting commissions from the airlines. All in all i think it was very positive. That does not mean all will be rosy but i know i would rather have my money in WEBJET than Flight Centre.
WEB Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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(20min delay)