Wotif relies considerably on google for revenue. SEO is a primary source of Wotifs revenue. Google will only last for a few more years as a primary driver of accommodation revenue. Consumer patterns are segmenting considerably as new technology emerges. Its not a given, at all, that Wotif will continue to grow. Capturing online accommodation revenue is about to get seriously harder as consumers look to peer to peer recommendations and other sources to find and book accommodation.
Wotif need to look beyond simple mobile phone applications. They may have a database of users, but is there any social interaction between these people. No. They have a very traditional online business. The next big thing is around the corner and thats where the herds will go which will seriously erode google volumes. Already, we are seeing considerable downwards trends in google search volumes and this may effect Wotifs growth.
Can Wotif adjust to this change because simply relying on basic online methods such as PPC, SEO, viral marketing, offline marketing and a mobile website aint going to cut the mustard moving forward for these guys. Acquisitions are 1 thing, but first to market targeting the next big consumer shift is what they should be focusing on.
Just my thoughts.
Cheers
WTF Price at posting:
$6.50 Sentiment: None Disclosure: Not Held
