ASX small-cap stocks can be thrilling investments to own for the long term if they grow in scale.

I'd say it's much easier for a business to double in size from $200 million to $400 million than it is to go from $2 billion to $4 billion.

I'm bullish about the business Webjet Group Ltd (ASX: WJL) because of its plans to grow significantly in the coming years.

Webjet recently undertook a three-month strategic review of its business, extensively using data and objective analysis to examine various aspects, including its current situation, momentum, outlook, competitive dynamics, and the future of travel and technology. The opportunity identified by that review is exciting, in my view.

The ASX small-cap stock plans to double by FY30

The business aims to deliver significant growth in the coming years, with a goal of doubling total transaction value (TTV) between FY24 and FY30 to reach at least $3.2 billion. It plans to achieve this through greater investment. There are five areas of focus for the business.

First, it plans to revitalise its Webjet brand.

Second, it's going to expand its total addressable market through adjacencies identified in its deep dive.

Third, it plans to capture more of the customer travel wallet through a new loyalty program and enhanced member offers.

Fourth, the ASX small-cap stock is going to "optimise" its core business of domestic flights, motorhomes, and cars.

Finally, it wants to maintain its "operational excellence".  

A key part of the company's above plans is to expand its international flights market share. Around 20% of its bookings are outbound international flights, and it wants to grow this to 25% to 30% with "enhanced content and technology, and expanded enhancement and reach".

It plans to achieve this international travel growth through expanded content and pricing options, new tech and user interface enhancements, deepened customer engagement, and optimising customer conversion.

It also wants to provide a distinct standalone offering for business travel to address demand for a seamless digital experience.

The company also wants to provide an expanded hotels and packages offering for customers. According to Webjet, 74% of people would like to book all of their travel in one place.

However, the ASX small-cap stock expects to invest up to $15 million in FY26 to drive some of the growth mentioned above, which could lead to a "temporary compression during the investment phase" of profit margins. The FY30 operating profit (EBITDA) margin is expected to exceed the current levels, driven by revenue growth, scale efficiencies, and operating leverage.

Webjet share price snapshot

As the chart below shows, the Webjet share price has approximately halved since late September 2024, making it much cheaper.