A Stellar Day for WEB Travel Group on the ASX
In an exciting session on the Australian Securities Exchange today, Web Travel Group Limited (ASX: WEB) delivered an exceptional performance, with its share price surging 12.61% by early afternoon. The company’s stock rose to $5.27, up from the previous close of $4.68, after opening at $5.05 and hitting an intraday high of $5.49. Trading volume spiked to over 7.7 million shares, well above the four-week average of 1.85 million, resulting in a turnover of more than $41 million.
This significant uptick follows the company’s FY25 results announcement, which highlighted a resilient business model, solid growth metrics, and a strategic roadmap that appears to have struck a chord with investors.
WEB Travel Group surged over 12% today [Market Index]
What is WEB Travel Group?
Web Travel Group Limited, formerly part of Webjet Limited, now operates as a standalone business-to-business (B2B) travel platform under the WebBeds brand following a demerger in late 2024. The company provides hotel distribution services globally, acting as a marketplace for travel agencies, tour operators, and other travel businesses to buy and sell accommodation and ground services efficiently.
Its global reach and focus on directly contracted inventory make it a central player in the evolving B2B travel ecosystem.
Financial Highlights from FY25
Investor enthusiasm is being driven largely by Web Travel Group’s FY25 financial results, presented today. Total Transaction Value (TTV) rose by 22% year-on-year to a staggering $4.9 billion, supported by a 20% increase in bookings and a 2% increase in average booking value.
While revenue only inched up 1% to $328.4 million, this was attributed to a strategic shift in market focus toward lower-margin but high-growth regions like Asia Pacific and the Americas. These geographies collectively now account for over 53% of TTV, compared to just 31% before the pandemic.
On the earnings front, EBITDA came in at $138.8 million, reflecting a 14% decline from FY24. The decline was mainly due to planned investment in staff and technology, as well as the impact of lower margins as the company grows into newer markets. Still, the result was within expectations and aligned with the company’s long-term growth strategy.
Financial Highlights Summary of WEB Travel Group, FY25 [WEB Travel Group]
Strategic Investments and Clear Growth Trajectory
One of the key takeaways from the investor presentation was management’s focus on sustainable and scalable growth. The company reaffirmed its commitment to reaching $10 billion in TTV by FY30, a target backed by a strong network effect, continued geographic expansion, and enhancements in technology and customer experience.
To drive that goal, Web Travel Group has ramped up its investment in contracting teams, particularly in the Asia Pacific and Americas regions. These markets are showing high double-digit growth, with APAC TTV rising 26% and the Americas up 20% compared to FY24.
The company is also leveraging technology to enhance conversion rates and automate supply-demand matching. AI-powered customer service initiatives and expanded point-of-sale features are in development, designed to improve user engagement and operational efficiency.
Market Share Gains and Resilience
What has impressed analysts and shareholders alike is the company’s ability to grow faster than the underlying market. According to the FY25 report, WebBeds achieved TTV growth of 22%, compared to an industry average of just 5%. This indicates increasing market share and validates the company’s multi-supply aggregation strategy, which provides travel buyers with greater choice and flexibility.
Further reinforcing investor sentiment, the company completed a $150 million share buyback and addressed nearly 88% of potential dilution from outstanding convertible notes, showcasing robust capital management and confidence in its own valuation.
Rebound from a Tough Year
Despite today’s stellar performance and FY25’s solid figures, it’s worth noting that the stock is still down nearly 31% over the past year. When compared to the ASX200 and its own sector, Web Travel Group has underperformed by a significant margin—38.89% and 51.17% respectively.
However, the strong bounce in the share price today, coupled with a 15.07% gain over the last week and 25.78% for the month, suggests a potential turning point. Investors may be pricing in the rebound from prior weakness and the company’s clearer, post-demerger identity as a pure B2B travel powerhouse.
Outlook: Optimism for FY26 and Beyond
Looking ahead, Web Travel Group’s management remains optimistic. FY26 EBITDA margins are expected to range between 44–47%, and further OPEX investments are planned to build out supply capabilities. The company is targeting a return to stronger margins from FY27 as new supply contracts start contributing more meaningfully.
Sales in the Americas and Asia Pacific continue to exceed expectations, and WebBeds is positioned as a dominant global player in a market ripe for disruption. Its demerger from the Webjet B2C division appears to be a well-timed strategic pivot, allowing each entity to sharpen focus and allocate capital more effectively.
Conclusion
Today’s 12.6% surge in Web Travel Group’s share price is a strong vote of confidence from the market. Backed by robust FY25 performance metrics, a clearly defined growth strategy, and renewed operational focus post-demerger, the company has positioned itself as a leader in the global B2B travel space.
While short-term risks remain—particularly regarding global travel demand and market volatility—Web Travel Group has laid a solid foundation for long-term expansion and shareholder value creation. For investors seeking exposure to the travel sector’s resurgence, this may be one stock to watch closely.
