Webjet and Wotif has been a huge force in the Australian travel market, taking control of much of the bookings that occur within from within Australia.
Due to the relatively small size of the Australian market, bigger international competitors have previously not put in much effort in seizing market share. Recently however, this has changed and the international power houses are starting to specifically target the Australian market.
Booking.com is one such company has made a push into the Australian market by spending money on a television campaign to build brand recognition. The push has dramatically helped Booking.com and has seen it surpass Wotif.com and Webjet in unique visitor numbers.
As a result, Wotif and Webjet have issued numerous profit warnings and a grim outlook. Wotif has also signaled that it will have to increase advertising spend due to the competition it is now receiving. It is expected that even with this marketing spend, market share will still drop by 7%. The big difficulty is that international companies such as Booking.com have deeper pockets and the ability to offer customers a Booking.com coupon to use.
The best chance for the companies is to beat these international competitors at what matters most, getting to the top of Google search.