The Webjet Ltd (ASX: WJL) stock price is currently trading below $1 after falling heavily since September 2024. It's looking like the ASX travel share could be an opportunity.

The fact that the online travel agent (OTA) is suffering at the moment is not particularly surprising, considering many Aussie households are struggling amid the high cost of living and elevated interest rates.

For the six months to 30 September 2024, Webjet reported that bookings dropped 8% year over year to 783,712, and total transaction value (TTV) also dropped 8% to $752 million.

Webjet explained at the time that the challenging macroeconomic conditions were impacting domestic flight bookings:

The Australasian economy remains slow, and the ongoing cost of living pressures continue to subdue demand for travel, particularly for domestic flights.

Webjet OTA bookings were further impacted during the period by REX airlines going into administration given their predominately leisure focus.

Despite the challenging times, I think now is the right time to invest in the company's recovery.

Why I'm positive on Webjet stock

There are a few reasons why I like the ASX travel share right now.

Firstly, the company has done a good job of diversifying its revenue away from domestic flights by targeting higher revenue margin opportunities, selling more ancillaries to customers and increasing international flight bookings. Revenue per booking is now higher than it was before the pandemic.

Second, a focus on cost control has enabled the company to increase its online travel agency's profitability. The HY25 result saw revenue fall by 1% and operating profit (EBITDA) increase by 1% to $19.4 million. That increase in the EBITDA margin is a positive sign for future profits when revenue and TTV start rising again.

Third, in a seemingly cyclical industry like travel, I believe there will be a rebound at some point down the line. A recovery could come this year if there is a RBA interest rate cut, or multiple cuts. Some economists think a rate cut may be close, though not in February.

Finally, the company is making a number of investments that could unlock significant benefits in the long term. Webjet managing director Katrina Barry had this to say:

Our planned initiatives are progressing well with several showing exciting potential and we are accelerating investment in technology platforms and other key growth drivers.

Trip Ninja continues to deliver value for Webjet OTA and explore its international opportunities.

With the Webjet stock price down almost 30% from September 2024, it looks much cheaper and could be a buy opportunity, in my view.