Web Travel Group’s first-half earnings growth led by solid gains in the Americas

Web Travel Group (ASX: WEB) has posted a 17 per cent increase in underlying earnings to $81.7 million in the first half of FY26, with the performance aided by solid growth in the Americas and setting the pace for a record full-year result.

The company, which largely comprises the global business-to-business (B2B) wholesale travel marketplace WebBeds, was buoyed by a 22 per cent surge in total transaction value (TTV) to $3.17 billion.

Web Travel Group also says the half-year performance puts it on track to deliver it targeted TTV of $10 billion by FY30.

WebBeds has continued its pace of rapid growth following the demerger of the Webjet business last year into the consumer-facing travel operation Webjet Group (ASX: WJL) and the B2B operations of Web Travel Group.

Webjet Group, which is facing a potential $353 million takeover by Helloworld Travel (ASX: HLO), last week reported a 3 per cent fall in TTV to $726 million for the first half of FY26, citing challenging market conditions.

WebBeds provides travel agencies, tour operators and industry wholesalers a marketplace that connects them with more than 430,000 hotels in more than 16,000 destinations.

Web Travel Group’s managing director John Guscic says WebBeds has continued to deliver “world-class TTV growth”.

“We reported $3.2 billion TTV for the first six months of the financial year, 22 per cent more than the same period last year, driven by the significant above-market growth coming through in our top three regions, particularly the Americas,” says Guscic.

WebBeds bookings were up 18 per cent, with growth recorded across all regions, while group revenue increased 20 per cent reflecting margin stabilisation.

This growth has offset a 19 per cent lift in expenses which reflects CPI increases and the re-inclusion of bonuses during the period, as well as planned investment in hotel contracting resources.

A range of initiatives helped optimise TTV margins which were 6.5 per cent for the period, ahead of guidance, and expected to be sustained throughout FY26.

“This impressive growth is a reflection of our efforts and not macro-economic events,” says Guscic.

“WebBeds continues to win global share, which is amplifying the network effect and making us even more relevant to our hotel supply and travel buyer partners.

“The team’s unwavering focus on winning new clients, enhancing supply and geographic reach, and continuing to improve conversions is bringing us closer to our $10 billion TTV FY30 target.”

Guscic says WebBeds is a “highly scalable business” that the company continues to build out.

“We are maintaining market leading TTV growth rates without any margin decline and the investment we have made in contracting staff is expected to have meaningful impact to results in FY27,” he says.

Web Travel Group has made a strong start to the second half with TTV for the first seven weeks from 1 October this year up 23 per cent compared to the same period last year.

The group says it is on track to deliver record results with FY26 underlying EBITDA expected to be between $147 million and $155 million.

Web Travel Group ended its first half on 30 September with $481 million in cash and $699 million in available liquidity.

The company's shares hit a high of $4.55 this morning and were trading 43c, or 10.7 per cent higher, at $4.43 at 11.37am (AEDT).