Online travel booking company Wotif.com is pumping cash into a new online marketing campaign to help turn around its falling profits.
The company's net profit dropped 15 per cent to $43.2 million in 2013/14, following on from falls in the previous year.
To arrest the slide, Wotif spent an additional $10 million on advertising during the year and said marketing costs would continue to increase in fiscal 2015.
Wotif launched the Wotifia campaign in August, featuring a promotional short film and dedicated webpage to reach the next generation of Australian travellers and introduce them to the group's brand.
Chief executive Scott Blume said tactical decisions to ramp up investments in marketing and technology were among the reasons Wotif's bottom line suffered in 2013/14.
"During a year where total revenue rose slightly, our cost base increased faster than income, reflecting both our commitment to invest in our core technology and the competitive online marketing environment," he said.
Wotif hopes its increased advertising will help reverse the 9.4 per cent drop in accommodation bookings it suffered in 2013/14.
While bookings were down, customers paid more for their rooms although they didn't stay as long.
Mr Blume said while Wotif had lost hotel share, it had hiked commission charges for hotels since January.
The group's earnings result was in line with guidance issued as part of a downgrade in July when it flagged a 15 per cent drop in full year profit.
But the immediate future of Wotif remains in limbo as shareholders wait to vote in October on a proposed $700 million takeover offer from US travel giant Expedia.
Shareholders have been urged to accept the $3.30-a-share bid.
WOTIF.COM'S PROFIT SLIDES AS IT SPENDS MORE ON MARKETING
* Net profit of $43.2m, down 15.3 pct from $51m in 2012/13
* Revenue of $149.7m, up 2.1 pct from $146.6m
* No final dividend
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