Online travel agent Wotif.com's annual profit has dropped 12 per cent as tourists took advantage of a strong Australian dollar to journey further from home.
That trend has boosted Wotif's volume of flight bookings, but impacted its domestic and overseas accommodation bookings.
Wotif.com made a profit of $51 million in the 2012/2013 financial year, down from $58 million in the previous period.
Chairman Dick McIlwain said the strong Australian dollar and economy had shifted travel trends, encouraging local tourists to explore new places, away from its core businesses in the Australia, New Zealand and Asian region.
"Many of these circumstances did not suit Wotif," Mr McIlwain said.
"Any change which is likely to produce more interest in Australian and regional travel is being closely monitored."
The company's accommodation bookings fell 1.3 per cent from the previous year, as bookings in Asia declined for the fourth straight year.
Revenue was flat at $147 million.
Wotif's profit was also affected by $2.3 million in one off items relating to lower values of its domain names and increased spending on marketing and new mobile products.
Six months into the job, chief executive Scott Blume said the local retail market was likely to continue to be "problematic" in 2014.
The company will continue with a five-pronged strategy launched in June, he said.
The plan centres on raising more money from website traffic, improving its international online content and completing a marketing makeover.
Improving digital content, in particular for mobile phone apps, as well as spurring more Asian accommodation sales, will also be priorities, Mr Blume said.
The company will pay a final dividend of 11.5 cents, down from 13.5 cents in the previous year.
Wotif shares were down 23.5 cents, or 4.7 per cent, at $4.795 at 1358 AEST.
