The ASX small-cap stock Webjet Group Ltd (ASX: WJL) has drifted lower by close to 10% since September. I think this could be a good time to look at the business with its significant ambitions.
The vast majority of the operating profit (EBITDA) is generated by the online travel agency (OTA) segment called Webjet, which made $51.6 million EBITDA in FY25. It also has a cars and motorhome segment (which used to be called GoSee), which made $1.6 million of EBITDA in FY25.
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Why the ASX small-cap stock has the potential to soar
The company says that it has a plan to double its total transaction value (TTV) in five years, which is the value of the bookings going through its platform.
Webjet believes that the Australia and New Zealand travel sector has a total addressable market (TAM) of $103 billion, which is a large figure to target. That's broken down into domestic flights, international flights, hotels, packages, business travel, car and motorhome hire, and 'other'.
The ASX small-cap stock's main focus is on domestic flights but it has identified avenues where it can deliver significant growth by FY30, growing its TTV from $1.6 billion in FY24 to at least $3.2 billion by FY30.
It wants to become the first choice for Australasians to book travel. It's going to do this with a few different goals.
First, it wants to expand its market share of international flights from 20% of bookings to between 25% to 30% share of bookings, driven by enhanced content and tech and expanded engagement and reach.
Second, it wants to deliver an expanded hotels and packages offering. It wants to go from a flight-first model where hotels and packages are secondary, to a focused hotel offering and significantly scaled and tech enhanced packages product.
Third, the ASX small-cap stock wants to provide a tailored business travel offering, with a distinct stand-alone offering to address demand for a seamless digital experience.
Finally, it wants to refresh the brand and deliver a loyalty opportunity. Webjet wants to revitalise its brands with a "deeply value-adding experience that compels members to make Webjet, Airport Rentals or Motorhome Republic their first choice for booking travel."
Locomote acquisition
The company recently completed the acquisition of Locomote, an online business travel technology company with a fully developed end-to-end corporate booking platform
Management believes this acquisition, which will be rebranded Webjet business travel, will accelerate its FY30 growth strategy and capture a greater share of the business travel market.
By making this deal, the company enables a prompt delivery of a tailored solution.
Foolish takeaway
The ASX small-cap stock has a promising future and if it's able to capture more market share then its earnings and operating leverage could increase. I think it's one to watch in the current environment, along with some other appealing growth names.
