The Webjet Ltd (ASX: WEB) share price is down close to 3% so far this Monday.
Shares of the digital travel business currently trade for $5.26 each after closing at $5.40 a share on Friday.
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is also down around 1% today while the benchmark S&P/ASX 200 Index (ASX: XJO) is currently 0.11% higher.
Webjet shares are trading lower today amid the company posting strategy presentations for its GoSee and WebBeds acquisitions and for Webjet itself.
The reports focus on several initiatives to enhance Webjet's business. Let's investigate them.
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Boost sales and online conversions
Webjet noted the growth of e-commerce is expected to continue despite COVID-19 restrictions lifting. Total e-commerce sales in Australia are expected to grow by $2 billion over the next two years.
This insight ties in with the company's strategy to increase conversions across its web properties by adding additional payment options such as AfterPay and PayPal. As well, enrolled customers of certain credit card loyalty programs can also redeem their points at Webjet.
Additional features are being rolled out to further boost conversions, including mobile-optimised platforms, member deals, and partial deposits.
Bring complex itineraries online
Webjet noted that international flight bookings had rebounded strongly over the first two quarters of FY23, growing 52% in 1Q23 and 57% in 2Q23 as a percentage of pre-COVID travel.
Furthermore, 10% of searches on the Webjet platform were said to be for multi-stop trips.
This has led Webjet to integrate its Trip Ninja acquisition into its operations in a bid to help simplify booking complex itineraries while also providing a cost-saving and time-saving benefit for users.
The Trip Ninja technology helps to find the cheapest airfares by combining the services of different airlines on multi-stop trips. This gives Webjet a leg up on travel agents who can't comb through as many data points to find the best deal.
Optimize marketing channels and spend
The company will also reduce paid search spending and divert this budget into social media and video platforms.
This change in strategy is likely prompted by the demographics of its customers, noting that people under 34 are the company's fastest-growing market segment. Meanwhile, people over 45 have a higher average booking value.
It will also roll out specific strategies to reach and influence the youth market.
Another significant update was that Webjet will retain its marketing spend at 1.5% of time to value (TTV), down from 2%.
Webjet share price snapshot
The Webjet share price is down 1.55% year to date. The S&P/ASX 200 Consumer Discretionary Index is significantly down, with a 20.2% loss.
The company's current market capitalisation is around $2 billion.
