|New revenue approach required to reverse Wotif results.|
Friday, 8th March 2013
Source : Martin Kelly
|Revenue from the new, higher 11% accommodation commission can't flow soon enough for Wotif.com CEO Scott Blume, who today announced a 4.6% profit drop in profit for the online travel company in the six months to December 31. |
It was a tough initiation for Mr Blume, who started in late January and had nothing to do with the result except to articulate a poor set of numbers that show a company requiring a fresh approach.
Blume said the fall in first half net profit to $27.5m was primarily due to marketing, tech and labour costs.
However could be argued a 2% fall in accommodation revenue was more significant.
Costs are always going to increase in this business, the goal is to grow revenue at a faster rate, something Wotif is struggling with.
The main reason is that it's not selling as many rooms as it used to.
~ Important Notice ~
Articles appearing here contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
| Related News (Click title to read article)|
| Latest News (Click title to read article)|