Web Travel Group has reported a robust start to its first full financial year as an independent entity, following its demerger from Webjet in September 2024. Despite encountering challenges in the first half of the year, the company has demonstrated strong growth in Total Transaction Value (TTV) and bookings, underscoring its strategic focus on long-term expansion and market leadership.

For the 12 months ending 31 March 2025, Web Travel Group announced a significant 22% year-on-year increase in TTV, reaching $4.9 billion. This growth was complemented by a 29% rise in bookings in the first quarter of FY26. However, the company also faced declines in revenue, margins, EBITDA, and net profit. These were attributed to increased expenses from planned headcount growth and strategic technology investments aimed at enhancing its operational capabilities.

In the first half of FY25, WebBeds, the company’s B2B division, showcased strong performance with a 25% increase in TTV to $2.6 billion and a 22% rise in bookings compared to the same period in FY24. The underlying Group EBITDA for this period was $70 million, an 8% decrease from the previous year, primarily due to higher expenses and persistent margin pressures in the competitive travel market.

Web Travel Group’s strategic investments in technology and personnel are geared towards enhancing its global B2B marketplace. A key focus is on increasing the number of directly contracted hotels, a move expected to improve margins and booking volumes, with significant returns anticipated by FY27. The company has also successfully expanded its operations into key markets in the Asia Pacific and the Americas. These regions now account for 53% of TTV, a substantial increase from 31% pre-pandemic, thereby strengthening Web Travel Group’s global presence and reducing its reliance on European markets.

Looking ahead, Web Travel Group is targeting record EBITDA in FY26 and remains committed to achieving $10 billion in TTV by FY30, with EBITDA margins projected to be around 50%. The company expects TTV margins to stabilise at approximately 6.5% in the medium term, before increasing as its strategy to expand directly contracted inventory matures. Managing Director John Guscic expressed confidence in the company’s trajectory, stating, “We are targeting record EBITDA in FY26 and remain committed to delivering $10 billion TTV in FY30 at circa 50% EBITDA margins.” He also noted that there has been no significant decrease in travel to volatile regions, such as the USA, with all inbound and outbound markets showing gains.

To further enhance shareholder value, Web Travel Group announced a $150 million on-market share buyback program. This initiative is designed to maximise returns for shareholders and reduce potential future dilution from the company’s $250 million convertible notes, which are due in 2026. Despite short-term challenges, Web Travel Group’s strategic initiatives and consistent market expansion efforts position it well for sustained growth in the global B2B travel sector.