Shares in the online travel firm Wotif.com are down by more than 30 per cent.

The plunge came after the company announced a profit forecast downgrade for the first half of this financial year.

Wotif.com expects its net profit after tax to be $22.6 million in the first half, down from $27.5 million the same time last year.

The company says its operating costs will rise by $9 million due to marketing and staff costs.

“The increase in marketing is attributed to the extremely competitive online advertising marketplace where overall costs have increased,” it said in a statement to the ASX.

“The outlook for the second half FY14 remains volatile with retail conditions in our key Australian and New Zealand retail market continuing to be soft.

“Given this volatility, it is not possible to provide guidance for the full FY14 fiscal year at this time.”

Wotif.com’s share price dropped by 30 per cent after the announcement.

Wotif Group managing director and CEO Scott Blume said the company was in a “year of transition”.

“The increase in our marketing and information technology costs in the first half is to support the strategic initiatives, invest in new market segments and respond to rapidly changing market conditions,” he said in the statement.