Webjet OTA increases revenue/search by 125% with Trip Ninja
How Australia’s leading Online Travel Agency used Trip Ninja’s FareStructure solution to realize a significant uplift in revenue per search and increase conversions.
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Webjet OTA increases revenue/search by 125% with Trip Ninja
How Australia’s leading Online Travel Agency used Trip Ninja’s FareStructure solution to realize a significant uplift in revenue per search and increase conversions.
“We are really enjoying working with the Trip Ninja team and collaborating to find better fares to save our customers money. Their innovative solutions are re-shaping fare shopping around the globe.”
Webjet Limited is an ASX 200 listed (ASX: WEB) global travel business that enables travel through its market leading brands supported by its travel technology businesses. Webjet Limited acquired Trip Ninja to improve the performance of the Webjet OTA multi-city searches and to license the technology to other OTAs across the world.
Webjet OTA used Trip Ninja’s FareStructure solution to:
Webjet OTA is the leading OTA in Australia, controlling ~3% of the international outbound market and targeting a 10% market share for international outbound flights. Approximately 10% of its total flight searches are international multi-city.
Webjet Limited acquired Trip Ninja in 2021 to implement their FareStructure technology into Webjet OTA to increase customer acquisition by substantially reducing fares on ex-Australia multi-city trips. Seeing the sophistication, ease of use, and quick implementation provided by Trip Ninja’s technology, Webjet Limited decided that it was more advantageous to purchase the company than to attempt to build similar technology in-house.
FareStructure, Trip Ninja’s multi-city product, creates pricing opportunities with split ticketing to generate better fares than traditional GDS search results. Webjet OTA used FareStructure to reduce fares in 67% of trips by an average of $2,330 AUD less than standard GDS results. This 30% reduction in average fare offered both a revenue management opportunity and an increase in customer conversion rates.
To capitalize on the cost reductions surfaced by FareStructure, Trip Ninja offers a machine learning-powered revenue management system that determines ideal pricing for every trip and maximizes Revenue per Search.
International, Multi-City Itineraries: We’ve implemented our FareStructure technology with Webjet OTA using a phased roll out approach, first focusing on 3-segment trips - itineraries analyzed in this case study are 3-segment international trips. Trips that contain more segments are more complex and therefore present even better opportunities when using Trip Ninja’s technology. The phased roll-out is nearly complete and data is being collected to broaden the scope of this case study to include more complex trips.
Customer-First Content: Trip Ninja’s software was built to be flexible and adaptable. Since Webjet OTA caters to multiple customer segments, placing varying importance on itinerary price and breadth of options, Trip Ninja increased the number of results returned from 150 to over 1000 with varied price points.
Revenue Management: Trip Ninja created a sophisticated revenue management system to capture the substantial savings generated by its split-ticketing technology to benefit Webjet OTA. This results in significantly higher Revenue per Search while delivering substantial savings to travellers.
Content: Webjet OTA uses Travelport content for multi-city trips. Adding LCC and NDC content will further improve results as Trip Ninja’s algorithms can mix-and-match between content sources to maximize savings.
Andrew Bell, Flights Product Manager, Webjet OTA
Webjet OTA realized a significant uplift in Revenue per Search, and, while the results presented in this case study are only for 3-segment searches, the phased roll-out has progressed to include all (i.e. 4+ segment) international and domestic multi-city trips. Results are expected to be even more positive for 4+ segment trips, and additional improvements to the revenue management models are expected to continue increasing revenues over time, while also improving customer satisfaction and conversion.
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