The Webjet Ltd (ASX: WEB) share price is on the move on Thursday.
In morning trade, the online travel agent's shares are up 3.5% to $8.24.
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Why is the Webjet share price rising?
Investors have been buying the company's shares this morning after it held its 2024 WebBeds Strategy Day.
In case you're not familiar with the business, WebBeds is a global marketplace for the travel trade. It provides hotel distribution solutions that make selling and buying accommodation easier.
WebBeds sources content from travel suppliers, and then connects, aggregates, and merchandises that content in the WebBeds Marketplace, and distributes it to a global network of travel buyers, who sell to the travelling public.
In recent years, it has become the growth engine of Webjet. And with the business still having a huge market opportunity to grow into, it is likely to be key to the company's future.
Today's presentation emphasised exactly that. Management noted that WebBeds is on track to achieve total transaction value (TTV) of $4 billion in FY 2024 and then $5 billion in FY 2025. After which, it is targeting TTV of $10 billion in FY 2030 with a 50% EBITDA margin.
To get to the latter, it will mean at least 2x market growth for the business. And while this is clearly a very strong growth rate, management is confident it has what it takes to get there.
The company has laid out its "Pillars of Growth" that it believes will help it achieve its targets. These are "growing our existing portfolio," "new customers, supply and markets," and "conversion."
In other news
In case you missed it earlier this week, Webjet released an update on its guidance for FY 2024.
It reaffirmed its FY 2024 earnings guidance for underlying EBITDA to be above the midpoint of the $180 million to $190 million range.
