Over the past 2-3 year WTF only managed to grow earnings through...

Over the past 2-3 year WTF only managed to grow earnings through ripping costs out - marketing and software development. Wotif.com looks exactly the same as the day it was launched. When i met with Expedia and Orbitz they said they employed 10+ web developers whose sole job it was to improve website conversions by changing the button sizes and colour shades - how can they compete - a 2m increase in costs is a big dent to profitability. I havent looked at it for a while but i remember it used to trade at 18x PE vs Expedia and PRiceline on 14-15x even though both of those companies had much better growth given emerging market exposure. Given the structural issues its facing it should be trading 12x PE. still a relatively good cash cow.

Online travel is a game of economies of scale - WTF used to have it in Australia but the game has gone global.

I always have like FLT - at long at return flights to the US and Europe are <$1500 it will do well. Most of its growth is from corporate travel now which is still quite a large opportunity. Not cheap but hard to short.