Can Web Travel Group (ASX:WEB) Deliver Further Growth? Macquarie Thinks So

Shwetambri Chauhan

29 May 2026 04:25 PM AEST

Can Web Travel Group (ASX:WEB) Deliver Further Growth? Macquarie Thinks So

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Highlights:

Macquarie's Outperform rating reflects confidence in WebBeds' Market Share gains and Earnings growth potential.
WebBeds delivered 20% TTV growth and 24% EBITDA growth in FY26, supported by expansion across the Americas and Europe.
Strong Liquidity and a scalable Business model position Web Travel Group to capitalise on future travel Demand growth.

Web Travel Group Limited (ASX: WEB) remains on the radar of investors following Macquarie's Outperform rating, which reflects the broker's positive view on the company's ability to continue growing market share, expand earnings and benefit from long-term trends in global travel demand. The broker's Investment thesis is supported by the performance of WebBeds, Web Travel Group's business-to-business (B2B) travel distribution platform, which continues to increase bookings, improve margins and generate Cash Flow across key international markets.

At the time of writing on 29 May 2026, Web Travel Group shares were trading at $2.645, up 4.13% for the session, giving the company a Market Capitalisation of approximately $919 million. Investor interest has been supported by the company's FY26 results, which showed growth in bookings, Total Transaction Value (TTV), Revenue and earnings despite geopolitical disruptions affecting parts of the travel sector.

Following the demerger of Webjet Group, Web Travel Group is focused exclusively on WebBeds, a global accommodation marketplace that connects travel buyers with hotel suppliers across multiple regions. The business has continued to expand its geographic reach while benefiting from a scalable operating model that has supported both revenue growth and Margin improvement. With management highlighting ongoing market share gains and maintaining confidence in long-term travel demand trends, investors are assessing whether the company can sustain its growth trajectory in FY27 and beyond.

WebBeds Continues Delivering Growth Across Key Markets

Web Travel Group's FY26 performance was largely driven by the continued expansion of WebBeds, which remains the company's primary earnings engine.

For FY26, WebBeds reported:

TTV of $5.8 billion, up 20% year-on-year
Revenue of $394.1 million, up 20%
EBITDA of $172.7 million, up 24%
Bookings of 9.9 million, up 18%
EBITDA margin of 43.8%, compared with 42.3% in FY25

A notable aspect of the result was the company's ability to generate approximately $1 billion of incremental TTV while simultaneously improving margins. This suggests that growth is not solely Volume-driven but is also benefiting from improved pricing and Operating Leverage.

Regional performance was led by the Americas and Europe:

Americas bookings increased 41%
Europe bookings increased 19%
APAC and Middle East & Africa continued to grow despite geopolitical disruptions affecting travel activity in certain markets

Management noted that WebBeds continues gaining market share through:

Expanding its customer base
Increasing hotel Supply
Improving conversion rates
Extending geographic reach
Strengthening relationships with travel intermediaries

These initiatives support the company's objective of sustaining growth while improving profitability.

Scalable Business Model Supports Margin Expansion and Cash Generation

One of the key investment considerations for Web Travel Group is the scalability of the WebBeds platform.

While revenue increased 20% during FY26, expenses rose 17%, allowing the business to generate additional operating leverage. As a result, EBITDA grew faster than revenue, supporting margin expansion.

The company reported:

Underlying Group EBITDA of $148.4 million, up 23%
Underlying NPAT of $85.9 million, up 8%
Underlying EPS of 23.8 cents, up 16%

Another positive outcome was cash generation.

Web Travel Group generated:

Operating Cash Flow of $132.4 million
Cash conversion of 107%, compared with 73% in FY25

Strong cash conversion highlights the efficiency of the company's asset-light business model and provides flexibility to invest in future growth initiatives.

The business ended FY26 with:

Cash balance of $448.1 million
Pro forma liquidity of approximately $500 million following Redemption of convertible notes
Access to additional undrawn revolving Credit facilities

This Balance Sheet position may provide optionality for acquisitions, technology investments, or strategic expansion opportunities.

Outlook Remains Focused on Market Share Gains and Long-Term Travel Growth

Although FY26 delivered positive operational outcomes, management acknowledged that near-term trading conditions remain influenced by geopolitical uncertainty.

The ongoing conflict in the Middle East has impacted travel demand in parts of the MEA and APAC regions. Despite these challenges, the company reported that during the first eight weeks of FY27:

Bookings increased 6%
TTV increased 4% in constant currency
Americas and Europe continued to deliver growth

Importantly, management expects FY27 TTV margins to remain at or above 6.5%, indicating confidence in pricing discipline and business quality despite external pressures.

Longer term, Web Travel Group believes several structural drivers remain supportive:

Continued recovery and growth in global travel demand
Expansion of international hotel inventory
Increasing adoption of B2B travel distribution platforms
Market share gains across key regions
Ongoing investment in technology and platform capabilities

Management also highlighted that the company operates with a conservative balance sheet, providing flexibility to pursue attractive Acquisition opportunities if market conditions permit.

Web Travel Group's FY26 results demonstrate continued growth in bookings, TTV, revenue, and earnings despite a challenging geopolitical backdrop. The WebBeds platform continues to expand market share across key regions while improving margins and generating strong cash flow.

The company enters FY27 with a strengthened balance sheet, significant liquidity, and ongoing opportunities to benefit from Long-term Growth in global travel demand. While geopolitical uncertainty remains a near-term risk, management continues to focus on disciplined growth, pricing resilience, and operational efficiency.

Supported by market share gains, margin expansion, and a scalable business model, Web Travel Group remains positioned to participate in future growth opportunities across the global travel distribution market.

FAQs

Q: What does Web Travel Group do?

A: Web Travel Group operates WebBeds, a global B2B travel distribution platform that connects travel agents, tour operators, airlines, and other travel intermediaries with accommodation providers worldwide.

Q: What were Web Travel Group's FY26 financial results?

A: FY26 TTV increased 20% to

Q: Why is Macquarie positive on Web Travel Group?

A: Macquarie's Outperform rating reflects confidence in WebBeds' market share gains, scalable business model, margin expansion potential, and long-term travel industry growth opportunities.

Q: What are the main risks facing Web Travel Group?

A: Key risks include geopolitical instability, fluctuations in global travel demand, economic uncertainty, foreign exchange movements, and competitive pressures within the travel distribution industry.

Q: What is management's outlook for FY27?

A: Management expects FY27 TTV margins of at least 6.5% and believes the company remains well positioned to benefit from long-term growth in bookings and TTV despite ongoing geopolitical uncertainty.

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