Why Is Helloworld Travel Raising FY25 EBITDA Guidance Despite Lower Passenger Spend?

Guidance Upgrade Signals Resilience

Helloworld Travel Limited (ASX, HLO) has revised its full-year FY25 Underlying EBITDA guidance upward to a range of $58 million to $62 million, improving on its previous forecast of $52 million to $56 million. This update reflects a stronger-than-expected operational performance despite some headwinds in passenger transaction values.

The company’s earlier guidance, provided in February and updated mid-year, had anticipated a more modest earnings outcome. However, recent trading results have demonstrated resilience, with improved margins and effective cost control cushioning the impact of softer customer spending patterns.

Shifts in Travel Patterns and Revenue Mix

Helloworld’s passenger Total Transaction Value (TTV) has declined year-on-year, influenced by a shift in customer preferences from higher-spending long-haul trips to more mid-haul destinations such as Japan, Bali, Thailand, and Fiji. Additionally, average airfares, including premium class fares, have softened, contributing to the lower TTV.

Despite this, the company has managed to slightly improve its margins, indicating a more efficient cost structure and pricing strategy. A notable gain was also recorded from the revaluation of its shareholding in Webjet Group Limited, adding a financial boost outside core operations.

Growth in Cruises and Ready Rooms

One of the standout performers has been the cruise segment, which continues to experience strong sales growth. Similarly, the Ready Rooms business has more than doubled its performance compared to the previous corresponding period, underscoring the company’s ability to capitalize on niche travel markets.

These areas of growth have helped offset some of the softness in other travel categories, contributing to the improved EBITDA outlook.

Network Strength and Forward Bookings

Helloworld’s extensive travel agent network remains a critical asset, with over 96% of agents re-signed, including key groups such as First Travel Group in New Zealand. This high retention rate reflects strong demand for leisure and business travel across Australia and New Zealand, providing a stable foundation for future revenue.

Moreover, the company reports strong forward bookings extending well into 2026, which should support revenue visibility and operational planning in the coming months.

Helloworld’s subsidiaries and investments, including Express Travel Group, MTA, and Phil Hoffmann Travel, have also performed well, contributing positively to the group’s overall results.

The company’s FY25 results remain subject to audit and are contingent on no material adverse changes in operating conditions.