Webjet welcomes Travelocity acquisition of Zuji: media

Webjet has reportedly extended its congratulations to the American Travelocity group following the announcement of its acquisition of Zuji last week.

However, the company warned that the Travelocity will find Australia a “very tough market”, according to www.etravelblackboard.com.

“We consider Travelocity has been very realistic in its assessment of the internet travel environment in Australia recognizing that the Australian internet travel territory is a vastly different experience to that of the American, and other parts of the world,” managing director David Clarke reporteldy said. “To the extent that it is in this country led by Webjet and that the prospects of a new, even mega operator with the skills of Travelocity gaining substantial traction in this market without a step of the type they have taken, would have been exceedingly remote.”

The internet travel service provider said they would be watching with “respectful interest” Travelocity’s plans for local operations.

Last month, Expedia Inc. had launched a dedicated Australian website with hopes to encourage a greater growth of online travel bookings in the region. Arthur Hoffman, managing director, Expedia Australia had said, “Many Australians already shop on various Expedia-branded websites around the world.  With the launch of Expedia.com.au we have now created an Expedia website that is tailored to the needs of the Australian consumer.”

Clarke reportedly said that the acquisition indicates that the “entry barriers into serious distribution of travel on the internet in this country are vastly greater than may appear at first glance.”

He gave warning that even very major American operations such as Travelocity and Expedia would find this a “very tough market and certainly Webjet is not about to gift wrap our customers and surrender any form of market share”, according to www.etravelblackboard.com. “There is a concurrent tidal wave in Australia where increasingly potentially travellers are voting with their mouse clicks away from airline sites in the search with the ability to mix, match and aggregate different airlines to obtain the best travel value,” he reportedly said.