Web Travel Group Limited · ASX:WEB
Web Travel — WebBeds Group — Investor Day (March 2024)
48 slides from Web Travel's investor day presentation, Mar 21, 2024
Slide 1: Strategy Day
For personal use only Strategy Day. March 2024 1
Slide 2: Welcome to the 2024 WebBeds Strategy Day
Welcome to the 2024 WebBeds Strategy Day. For personal use only Roadmap to $10bn Today we will cover: TTV supported by 3 major pillars Our Aspirations. of growth. Powering Our Future. • Growing our Existing Portfolio • New Customers, Supply & Markets • Conversion Summary. 2
Slide 3: Our Aspirations
For personal use only Our Aspirations. 3
Slide 4: 1H24 - WebBeds Financial Performance
1H24 - WebBeds Financial Performance. For personal use only All metrics Bookings TTV Revenue EBITDA significantly ahead 3.52m $2.08bn $171.8m $89.9m of both 1H23 and (AUD) (AUD) (AUD) pre-pandemic levels. Driven by reopening of APAC, Lower Average Booking Value Reflecting increased share Reflecting
Slide 5: We are on the way…
We are on the way… For personal use only On our journey towards delivering A$10bn TTV c.50% $10bn TARGET TTV in FY30. EBITDA margins Coming soon... FY30 $10BN TTV FY25 $5BN TTV On track to deliver A$5bn TTV in FY25 up c.25% on FY24. 5
Slide 6: We are on the way…
We are on the way… For personal use only Through acquisitions between 2014 -2018, plus c.$2.5bn organic TTV growth, we are on track to deliver to deliver c.$4bn TTV this year. 6
Slide 7: Organic growth path
Organic growth path. For personal use only To deliver the $10bn TTV, we plan to grow at least 2x market growth. 1 1) 7.7% expected market growth. See slide 13. 7
Slide 8: How did we win share pre-Covid?
How did we win share pre-Covid? For personal use only Organic growth factors in winning share, post acquisitions. People. Geographic Channel Network expansion. expansion. effect. Building out a world class Market leadership Going beyond Retail Increasing relevance management team position in MEA, fo
Slide 9: How will we win share post-Covid?
How will we win share post-Covid? For personal use only Organic growth factors in winning share; building upon previously outlined strategies. Investing Distribution Changed Geographic in technology. consolidation. landscape. expansion. We invested in technology With a shift towards Our global #2 po
Slide 10: Powering our future
Powering For personal use only our future. 10
Slide 11: Our Pillars of Growth
Our Pillars of Growth. For personal use only Three areas of focus to ensure continued growth towards FY30. 1. 2. 3. Growing Our New Customers, Conversion. Existing Portfolio. Supply & Markets. • Nurturing & growing our • New customer pipeline • Continue current efforts. existing portfolio of travel
Slide 12: 1. Growing our existing portfolio
1. Growing our For personal use only existing portfolio. 12
Slide 13: Recap from Euromonitor's research
Recap from Euromonitor’s research. For personal use only Wholesale market Global Hotels Industry - Euromonitor. forecast to grow 2022 2027 F 7.7% CAGR over At A$5bn in FY25, the next 5 years. WebBeds will still be 2023F-2027F CAGR $825.4bn 0.65% of total Despite market USD Global Hotel Room Guest Bo
Slide 14: Facts & Figures: Our global presence & performance
Facts & Figures: Our global presence & performance. For personal use only We are in all WebBeds Global Presence & Team. WebBeds supports our global distribution network through: major markets worldwide. 2,000+ people in 120+ cities across 50+ countries speaking 50+ languages 14
Slide 15: Facts & Figures: Our product
Facts & Figures: Our product. For personal use only Worldwide hotels, Hotel Product. Worldwide hotels including global chains & independently managed and contracted properties. accommodation including global 430,000+ chains and hotels independently Hotels by WB Region 157,833 Europe 16,000+ managed
Slide 16: Facts & Figures: Our network & reach
Facts & Figures: Our network & reach. For personal use only Our global Network & Reach. We distribute our products through a global network of travel buyers. network of travel buyers booked 44,000+ 16m+ room nights travel buyers for the 12 months 139+ ending September source markets 2023. Europe Gen
Slide 17: What we do…
What we do… For personal use only We provide WebBeds connects a valuable travel sellers with travel buyers marketplace across all major global markets solution for our partners, connecting hotels looking to fill rooms & buyers trying to find rooms for travellers. 17
Slide 18: A simplified overview of a booking journey
A simplified overview of a booking journey. 1. For personal use only We connect supply 4. 3. 2. The travelling public & demand, through Information sent to the supplier; bookings made & transaction WebBeds The travel buyer input/search’s booking seeks information from one of the booking channels our
Slide 19: Buying and selling more
Buying and selling more. For personal use only We have become Top 30 Destinations. Positive trajectory for our top 30 destinations, up in both TTV & booking volumes. more significant to our pre-Covid TTV Bookings partners. Top 30 Oct 22-Sep 23 Oct 22-Sep 23 43% 50% & Destinations. on pre-Covid 1 on
Slide 20: 2. New Customers, Supply & Markets
2. New Customers, For personal use only Supply & Markets. 20
Slide 21: Selling more hotels via more customers in our portfolio
Selling more hotels via more customers in our portfolio. For personal use only New hotels Hotels Bookings in the last 12 months to Sep 2023. Strong growth in number of hotels & resorts with at least one booking. delivering greater range, Growth of hotels & new customers in our portfolio with at 31%
Slide 22: 2.1 Securing Supply
For personal use only 2.1 Securing Supply. 22
Slide 23: Global hotel chain insights
Global hotel chain insights. For personal use only Chains are Top 10 global hotel chains share of global hotel revenue. The largest chains account for about 11% of the total market. an important & significant supply Top 10 hotel chains $55.0bn 1 2022 type. revenue in 2022 Top 10 Chains Revenue1 USD
Slide 24: Independent hotels are the largest segment
Independent hotels are the largest segment. For personal use only Independent hotels1 place Outside the top 10 global chains, higher value there are a lot of other hotels. on distribution Often fragmented, with limited sales & marketing resources partners, like and far less access to global audience
Slide 25: About (& Types) of Pre-Buys
About (& Types) of Pre-Buys. 1 For personal use only Pre-buys is Occupancy Invoice ‘Buyout’ or Deposit. the practice of Guarantee. Guarantee. ‘Full’ Guarantee. securing a ‘pre-paid allotment’ of supply A contract with or without pre-payment A contract with or without pre-payment A contract with mand
Slide 26: About (& Types) of Pre-Buys
About (& Types) of Pre-Buys. For personal use only Traditional pre-buy models Existing pre-buy models (guarantees) are capital intensive and introduce risk were developed in a pre-digital world and a lot has changed. We achieve our goal of securing supply our way… As we continue our outsized market
Slide 27: Our Way: Partnerships models
Our Way: Partnerships models. For personal use only We continue We manage our access to hotel supply through Dynamic Inventory, Direct Contracts to achieve our & Third-Party connectivity… goal of securing supply our way; managing our inventory connectivity… 27
Slide 28: Our Way: Partnerships models
Our Way: Partnerships models. For personal use only We continue We manage our access to hotel supply through Dynamic Inventory, Direct Contracts to achieve our & Third-Party connectivity… goal of securing supply our way; managing our inventory connectivity & working with hotels to distribute invento
Slide 29: Strengthening Partner Relationships
Strengthening Partner Relationships. For personal use only Sophisticated Other ways by which we strengthen technology is our relationship with our hotel partners… the catalyst for improved revenue In October 2023, Webjet Limited acquired 100% of ROOMDEX, which has now been integrated per room and in
Slide 30: 2.2 WebBeds Booking Site
2.2 WebBeds Booking Site. For personal use only Search, compare & book hotels online 30
Slide 31: Potential of the Retail (non-API) Segment
Potential of the Retail (non-API) Segment. For personal use only Research indicates that global hotel bookings via intermediaries, both online and Growth offline, are forecast Potential to increase 9.1% CAGR from 9.1% CAGR 1 2023-2027.1 1) Source: “Global outlook on travel and deep dive into hotel w
Slide 32: New WebBeds Trade Booking Site
New WebBeds Trade Booking Site. For personal use only A refreshed HTML booking sites are an booking site important supply connectivity point for the retail segment will deliver greater penetration of the Retail Channel. 32
Slide 33: New WebBeds Trade Booking Site
New WebBeds Trade Booking Site. For personal use only Our upgraded Marketplace booking site will provide improved marketing capabilities, enhanced shopping features & empower travel buyers. 33
Slide 34: New WebBeds Trade Booking Site
New WebBeds Trade Booking Site. For personal use only Our upgraded Our new booking site will deliver… Marketplace booking site will provide improved marketing capabilities, enhanced shopping features Better UX. Better Search. Better Content. AI Travel Advisor. & empower travel An enhanced User A muc
Slide 35: 3. Conversion
For personal use only 3. Conversion. 35
Slide 36: Improved Conversion - 2022 to 2023
Improved Conversion - 2022 to 2023. For personal use only Key drivers How did we improve Conversion? that have We are now helped us drive more efficient We can leverage our massive on Booking-per-FTE basis conversion. depository of data to deliver a competitive advantage Improved We now have the Con
Slide 37: Levers to improve conversion
Levers to improve conversion. For personal use only We have Using Machine learning & AI, we have improved conversion - additional levers are: a long-term commitment to continuously improve our conversion rate, that will continue into 2030. Price. Technology. Mapping. Rate Plans. Accuracy. Competitiv
Slide 38: WebBeds' journey to improve conversion
WebBeds’ journey to improve conversion. For personal use only Our commitment Our journey of improvement - projects delivering value to our business. to continuously improve our conversion rate. Simplification. Automation. Accuracy. Intelligence. More to come… Simplification of our Operations & Reduc
Slide 39: Summary
For personal use only Summary. 39
Slide 40: Our Pillars of Growth
Our Pillars of Growth. For personal use only Three areas of focus to ensure continued growth towards FY30. 1. 2. 3. Growing Our New Customers, Conversion. Existing Portfolio. Supply & Markets. • Nurturing & growing our • New customer pipeline • Continue current efforts. existing portfolio of travel
Slide 41: WebBeds ability to generate demand
WebBeds ability to generate demand. For personal use only The flywheel effect expands our existing portfolio with new customers, new markets & new supply. 41
Slide 42: Towards a balanced global portfolio
Towards a balanced global portfolio. For personal use only All regions expected to grow although CAGR will be higher in APAC & Americas. Business split is expected to evolve towards equal share from our Top 3 regions. 1) dfg 42
Slide 43: Metrics of the future – Year on Year growth expectations
Metrics of the future – Year on Year growth expectations. For personal use only Higher growth rates in TTV and We expect to Revenue over deliver EBITDA margins at c.50% Expenses and and 90-110% Capex will drive cash conversion. c.50% EBITDA margins. TTV % Revenue % Expenses % CAPEX % Margin Shifts.
Slide 44: Our path to $10 billion TTV
Our path to $10 billion TTV. For personal use only The foundation has been laid, and the roadmap is clear to deliver $10bn TTV in FY30. 1) Assumes AUD to EURO 0.60cents 44
Slide 45: We are on the way…
We are on the way… For personal use only On our journey towards delivering A$10bn TTV c.50% $10bn TARGET TTV in FY30. EBITDA margins Coming soon... FY30 $10BN TTV FY25 $5BN TTV On track to deliver A$5bn TTV in FY25 up c.25% on FY24. 45
Slide 46: Thank you
For personal use only you. Thank 46
Slide 47: Appendix
For personal use only Appendix. 47
Slide 48: Use Disclaimer - Euromonitor International
Use Disclaimer - Euromonitor International. For personal use only This PowerPoint presentation includes proprietary information from Euromonitor International and cannot be used or stored with the intent of republishing, reprinting, repurposing or redistributing in any form without explicit consent