Things were tough at Webjet during 2020 and 2021 lockdowns... but now, it has gained a major profit.
👉 Background: Webjet is the ASX-listed online travel business founded in 1998 in Melbourne. It does all things flights, hotels, car rentals, insurance and a whole lot more.
👉 What happened: Like most travel businesses, things were tough at Webjet during lockdowns of 2020 and 2021. We're talking a $60 million loss last year, but fortunately, Webjet has enjoyed a post-COVID rebound - it generated $4 million in profit for the past 6 months.
👉 What else: Although it is traditionally known for its consumer-facing travel agency, its B2B business is actually the one that helped it walk through “the valley of the shadow of death”. Gotta love when a CEO references Coolio.
💡In a challenging economic environment, two key revenue streams diversifies your business for two sides of the economy.
💡Webjet has its consumer division, which is basically an online travel agency. But it also has its B2B division, named WebBeds, which is an intermediary for other travel agencies.
💡While a recession could hurt its consumer-facing travel agency, Webjet reckons this wouldn't impact growth in its b2b hotel-room inventory offering - which is booming.
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