|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.