WTF - Wotif.com Holdings

ROE said:

Damn thought it never happen, I always book via WTF but I just did a holiday booking via
booking.com came out $45 cheaper and no booking fees.

I always hate the booking fee

I think WTF day is numbered with the current model, this is one customer that never use their service again

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I agree and have said this previously. Booking.com really leaves everything else for dead IMO. The review and rating feature is excellent and the price transparency is something I really like too.

ROE said:

Why would they buy them out for a premium while they can slowly over time erode their customers based with superior offering?

you can see with Aldi and Coles as soon as their offering is cheaper, customers move to their store...

with online business there is no decent good will.....with physical store you may buy for superior location and demographic that goes with the location etc...

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+1

ROE said:

Why would they buy them out for a premium while they can slowly over time erode their customers based with superior offering?

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Because its easy and that's how the world works...why did William Hill buy Tom Waterhouse and Sportingbet? when they could of just "slowly over time eroded their customers based with superior offering" maybe they were in a hurry?

McLovin said:

On the internet, there's nothing that keeps the punter coming back except for knowing they will get a good price.

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While i can see your point and its a valid one, i don't agree 100%, just based on my personal experience i have always booked my flights via WTF and always will until i see a compelling reason no to. I know it works, i know its cheap, and i know what im getting and im very comfortable with the site.

I know im going to get a good price.

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Am i missing something, i cant see any flights on booking.com?

http://www.booking.com/

I use skyscanner - tends to compare all the comparison sites, and no bookng fee. Have never felt the need to use Wotif

So_Cynical said:

Because its easy and that's how the world works...why did William Hill buy Tom Waterhouse and Sportingbet? when they could of just "slowly over time eroded their customers based with superior offering" maybe they were in a hurry?
]

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Betting business is a little different, there is a small switching cost as in you got to fill the paper work, get it check out and verified so its a little harder for Average Joe to switch betting sites... where as booking sites has no such switching cost, it is a matter of click on another link.

Also most betting odds are very similar so you don't really need to switch unless you sign up for some sort of promotion... Betting business I say is a first mover advantage, those who suck up large customers base should be able to maintain that same customer based without too much hassle.

So anyone else wanting to grow their customer based either buy up someone else or offer some very generous sign up bonus which probably cost as much as taking over someone else database so buy up the database is the way to go.

I was a Centrebet investors some years ago because of that, they are one of the first mover in online betting...They got taken over for a premium but I still believe in the business and didnt think the owner need to sell for that reason...I reckon if they have kept the business and expand Centrebet will be bigger today than when they sold them up

I am surprised that most of these booking sites don't make it less enticing for customers to go to another site

by keeping all their infor online so all they need is a login and offer them some sort of reward for repeat purchase. Actually come to think of it agoda do do it and I use them a lot when travel oversea.

and WTF know they are on the decline, extra investment yield little return for them in recent time.. they probably know they cant compete with the larger oversea player and they pretty much put up the for sale sign but no one come forward yet.

If there is no buyer in the next 18 months then I reckon there wont be a buyer...

Definitely today's secret buy...

Apokolips said:

Definitely today's secret buy...

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Apokolips, could you please elaborate on this statement? I'm not quite sure what you mean.

Also, please note that ASF members are not permitted to recommend stocks as a "buy" or "sell" as this may be interpreted as unlicensed financial advice.

Good article in the BRW about the intense competition in online travel...

http://www.brw.com.au/p/business/mid-market/travel_start_business_and_foreign_6BXOAxUI6GH4ftaam1M64H

This kind of put things in perspective, IMO.

Soemino says that although it is making changes Wotif has limited resources to tap. She says that although Wotif has recently increased its commission on room rates from 10 per cent to 12 per cent in line with the industry standard, the firm is facing increasing competition from international giants such as Priceline (which owns Booking.com) which last year spent $US1.8 billion ($1.9 billion) on search engine marketing.

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McLovin said:

Good article in the BRW about the intense competition in online travel...

http://www.brw.com.au/p/business/mid-market/travel_start_business_and_foreign_6BXOAxUI6GH4ftaam1M64H

This kind of put things in perspective, IMO.

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I think the model that charge booking fee is now un-sustainable when booking.com doesn't charge booking fee
it was a good idea when there is no one else around but the space is now crowded and full of cheaper booking site

Expedia to buy Wotif. See ASX announcement for full details.

I am looking at a tidy profit for a purchase made in May.

Cheers

So_Cynical said:

(24th-January-2014) I think its only a matter of time before the online travel industry gets into some serious consolidation...growth by acquisition will be the way forward, the industry while operating with thin margins is rock solid and not about to be replaced by anything else.

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So_Cynical said:

(24th-January-2014) 3 or 4 big players will emerge, just a matter of picking the right stock.

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So_Cynical said:

(13th March-2014) I have hitched my wagon to WTF, in with the superfund at $2.39 thinking the break below $2.40 and the double bottom is a good enough reason to move today..positioning myself for the consolidations to come.
~

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Hate to say i told you so - oh hell i love it i saw this coming clear as day.

$3.30 per share including a special dividend...$3.40 with the franking credit.

WTF up 25% today.

So_Cynical said:

I have hitched my wagon to WTF, in with the superfund at $2.39 thinking the break below $2.40 and the double bottom is a good enough reason to move today..positioning myself for the consolidations to come.
~

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So_Cynical said:

Hate to say i told you so - oh hell i love it i saw this coming clear as day.

$3.30 per share including a special dividend...$3.40 with the franking credit.

WTF up 25% today.

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A great call.

You seem to have a knack of attracting takeovers. :bowdown:

P.S. I was going to post a message earlier but I didn't have the time to find all the awesome quotes to demostrate your call.

P.S. Bought some WEB this morning. Let's see if some of the enthusiasm brushes off.

So_Cynical said:

Hate to say i told you so - oh hell i love it i saw this coming clear as day.

$3.30 per share including a special dividend...$3.40 with the franking credit.

WTF up 25% today.

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Well played.

I'm still confused as to why they're bothering when they're already eating WTF's lunch, but anyway.

Interesting anecdote: I had to book a flight and for some reason Expedia's booking engine wasn't working, so I called Expedia and was put in a long queue and gave up after 10 minutes holding, then I rung Qantas, again placed in a holding pattern and gave up after five or so minutes. Finally, I rung Flightcentre (haven't used them in about ten years) call was answered immediately by someone who's first language was English and who was located in Australia and who I dealt with throughout the entire booking process. There was no generic email with the eticket and intin it came from the guy's own email address.

Nice

I was wrong ... I thought they going just bleed them and slowly dry up their customer based.
too risky just to bet on take over prospect that why I didn't enter

On November 17th, 2014, Wotif.com Holdings Limited (WTF) was removed from the ASX's official list following implementation of the scheme of arrangement with Expedia Australia Investment Pty Ltd.