Why is the Web Travel share price crashing 41% on Friday?

ASX investors are pummelling Web Travel shares today. But why?

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The Web Travel Group Ltd (ASX: WEB) share price is imploding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $4.20. In early morning trade on Friday, shares plunged to $2.475 each, down 41.1%. At the time of writing, in late morning trade, shares are changing hands for $2.69 apiece, down 36%.

For some context, the ASX 200 is down 1.6% at this same time.

Here's what looks to be sending investors rushing for their sell buttons today.

Web Travel share price hit on Spanish tax action

This morning, the ASX 200 travel stock announced that the Special Delegation of the Balearic Islands of the Spanish Tax Agency has commenced an audit of its Spanish subsidiary.

The audit is reviewing the direct taxes paid (and owed) between April 2021 to March 2024, as well as indirect taxes for the period between January 2022 to December 2025.

Management said that the company is cooperating with the Spanish Tax Agency.

Web Travel added that it will provide a market update for investors on the tax audit "as appropriate".

What's been happening with the ASX 200 travel share?

As you're likely aware, Web Travel spun off its online travel agency business, Webjet Group (ASX: WJL), in September 2024. That's left the ASX 200 travel stock to focus on its B2B travel business, WebBeds.

While the stock initially came under pressure following the split, the Web Travel share price managed to close 2025 modestly in the green. As of Thursday's close, shares were down 12.5% year to date. Those losses have now grown to 43.8% at the time of writing.

Web Travel ended 2025 with a bang, with shares surging 24.5% from 19 November through to market close on 31 December.

The ASX 200 stock got a big boost following the release of its half-year results on 25 November. The Web Travel share price closed up 9.3% on the day, with the company reporting an 18% increase in bookings to 5.1 million for the six months to 30 September.

And the company's total transaction value (TTV) soared 22% to a record of $3.17 billion, driving a 20% increase in revenue to $204.6 million.

Commenting on those results on the day, Web Travel managing director John Guscic said:

WebBeds continues to deliver world class TTV growth. We reported $3.2 billion TTV for the first six months of the financial year, 22% more than the same period last year, driven by the significant above-market growth coming through in our top three regions, particularly the Americas.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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