Webjet defies no-fee challenge

The company announced a further significant acceleration of TTV (Total Transaction Volume) growth in October.

Said managing director David Clarke, "Based on the period 1 October to 27 October, October has produced a growth in TTV of over 50% compared with October last year.

"This contrasts with September 32% as previously advised to the market.

"Whilst overall industry and economic data remains uncertain it is clear our current marketing activities are resulting in a trend which is massively better than the general travel market."

At WIT-Web In Travel, CEO Richard Noon had made it clear that Webjet would be sticking to its fee-based model.

Webjet's business was thriving despite the tough economic times because "we focus on the customer", he told WIT delegates.

In an email to WIT, after the conference, Noon said, "There seems to be some naivety around service fees in that 1) they are somehow separate from the overall flight purchase and therefore comparable between competitors and 2) they are somehow separate from the overall value proposition of finding the best fare for a particular consumer.

"For example, to say that a no fees proposition with a limited airline fare display stacks up against a fee with a comprehensive airline display is just nuts, but this is what's happening. Clearly consumers are showing that they understand the difference and the value Webjet provides."

At WIT, Noon said Webjet was all about lifting the veil on airfares. "It's about finding a fare that suits you. OTA models are largely commission-driven."

Robbie Cooke, CEO of the Wotif Group, said, "The Australian consumer is different. The position that consumers will move to a no fee model has not held true at all. It's the value proposition that Webjet still brings to the consumer."