Web Travel Group leads ASX as Webjet Group claws back losses
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The news: Shares in Web Travel Group and Webjet Group both gained on the ASX after the two travel booking companies provided their first results since Webjet split in September.
The numbers: Web Travel shares were up 6.3% to $5.22 by 3pm AEDT and was the best performer across the ASX 200.
Webjet Group shares rose 9.3% to 85.3 cents, clawing back losses from Thursday when it closed 7.69% lower.
Shaw and Partners kept its 'buy' rating on Web Travel Group, and raised its target price from $6.10 to $6.60.
The context: Shaw and Partners analysts said the bedbank market has long been in a structural decline with rising direct bookings and online travel agencies taking market share.
However, the transition towards hoteliers cutting the number of suppliers and viewing Hotelbeds, Expedia and Web Travel's wholesale booking business WebBeds as platforms via scale and technology differentiation is expected to continue to consolidate the industry, the analysts noted.
Earlier this week, Web Travel shares climbed after the B2B travel booking company reported double-digit bookings and total transaction value (TTV) growth for the first half of FY25.
Its B2C spin-off Webjet Group, however, reported a fall in bookings and TTV during the period. Its shares then took at hit on Thursday after the Australian Competition and Consumer Commission (ACCC) announced it had commenced proceedings in the Federal Court against the travel company's wholly owned subsidiary, Webjet Marketing, for misleading and deceptive conduct.
The source: Shaw and Partners research
