Webjet Launches Loyalty Program to Drive Growth

Webjet is rolling out a new loyalty program as part of a major strategy to boost bookings across its platform, particularly in international flights, hotel stays and business travel. The company aims to double its total transaction value from $1.6 billion to $3.2 billion by 2030. However, while this plan could strengthen its market position, it also requires a significant increase in marketing spend and operational adjustments.

Webjet, which was separated from Web Travel Group last year, is looking to capitalise on its brand recognition but wants to improve customer retention. A survey of 3,500 consumers found that while Webjet enjoys strong awareness, it is primarily associated with flights rather than full travel solutions like hotels and vacation packages.

The company’s strategy involves raising marketing investment from 1.5% to 2.5% of total transaction value. It also plans to introduce a clearer business travel offering to serve small and medium-sized enterprises more effectively. Webjet sees an untapped opportunity, as 30% of business travellers prefer online travel agencies for their flexibility and digital experience.

A key part of its approach is leveraging Australians' strong interest in loyalty reward programs. While the exact structure of Webjet’s loyalty program is still unclear, the company hinted at potential partnerships with existing rewards programs to enhance customer value.

This expansion comes with a projected cost of $15 million in the 2026 financial year, temporarily keeping earnings flat before anticipated long-term gains. Despite short-term financial sacrifices, industry analysts believe Webjet’s investment in growth could prove beneficial given its strong balance sheet and market positioning.

Source: The Australian, Travel Weekly