Business Description:
Wotif.com Holdings Limited (WTF) is a provider of online accommodation, activity and flight booking services in Australasia. The company represents over 19,600+ properties in more than 66 countries with its headquarters in Australia and offices in New Zealand, UK, Singapore, Thailand, Malaysia and Canada.

Strategy Analysis:
WTF provides a market place for accommodation suppliers and customers. WTF takes a commission on the value of the accommodation booked but does not carry inventory itself. Attractive interest income also comes from upfront payments which allow them to hold cash for up to 88 days before payment. This allows them a highly leverage interest return on someone else's capital. Future growth in bookings will come from increased share of online accommodation bookings, as well increases in WTF market share. WTF is the market dominant player with an estimated 36% of the Australian accommodation online-booking market. A self-enforcing dominant position allows WTF to starve its competitors of inventory, but only if hotels are content with terms. Superior layout and ease of use has been a large reason for WTF success. Competitors have already mimicked the layout. WTF must rely on it head start in brand recognition and build on this. Wotif.com Holdings reported NPAT down 3.8% to $50.96m for the year ended 30 June 2011. The key aspects underlying this result include: the sale of a total of 6.97m room nights across the group's network of sites (FY2010: 7.12m); and processing a total of 136,831 flight transactions in the reporting period (FY2010: 101,532). Revenues from ordinary activities were $138.35m, up 1.7% from last year. Diluted EPS was 23.95 cents compared to 25.01 cents last year. Net operating cash flow was $83.46m compared to $59.28m last year. The final dividend declared was 12.5 cents, taking the full year dividend to 22.0 cents compared with 21.5 cents last year.