Wednesday, August 2, 2006

Wotif to lead consolidation..is that right?

Canberra Times is more renowned for breaking news about which restaurant is lunch spot of the moment for politicians or which minor party nobody was found drunk at the Ranch in Manuka but it seems they are also getting into ecommerce and online travel reporting with a brief but interesting interview with Wotif's Graeme Wood. Not surprisingly Graeme confirms that he has no plans to expand beyond hotels. They have been consistent with this line for as long as they have been in business. What was interesting and surprising is this comment "Wotif will use funds generated by its floatation to swallow up other companies". Have not heard before any rumour or commentary that Wotif might go on the acquisition trail. Had expected them to focus their new found float wealth on marketing and product expansion. There are plenty of cheap interesting targets for them in the local market (travelmate/needitnow combo) but more likely this is the way they plan to crack the Asian market. The pickings in Asia for acqusition are pretty slim. Cendant/Travelport (with help from me) already picked up the best in Asia-hotels and Flairview (HotelClub/RatesToGo). Rakuten already bought mytrip. Leaves some smaller players like asiatravel.com in Singapore and HotelThailand and Asiarooms in Thailand - but there are serious issues with each of these. I am looking forward to watching this unfold. Strange that I have to now add the Canberra Times to my watch list.

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