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WANDERLUST and a search for new experiences overseas and at home is driving a revival in Australia's tourism companies.

More Australians are heading overseas and as many locally based companies expand their interests across the globe, they are poised to capitalise on an international revival.

MFS's recent decision to hold on to its hotel business the Stella Group is one indication of how insiders see the industry developing.

Stella Group managing director Rolf Krecklenberg has been bullish about the business which is continuing to expand its presence in the British market.

It recently bought the British-based Global Travel Group and has a strong presence in South Africa. Such expansion means the company has been able to capitalise on the growing number of Australians holidaying overseas.

And in Australia, subdued hotel development in recent years has been a boost for hotel occupancy levels which, in turn, is putting pressure on room rates.

MFS is on track to exceed $100 million in earnings before interest, tax, depreciation and amortisation for the first half of this financial year.

For the country's biggest travel agency, Flight Centre, the growing interest in travel has seen Australia's biggest travel company Flight Centre shares reached $31 last week, almost double their price last March.

They have now forecast a pre-tax profit of between $84 million and $90 million for the first six months of this financial year.

For the full year Flight Centre is expecting a 25 per cent growth in pre-tax profit, driven by an increase in total transaction value of more than 15 per cent a year.

Jetset Travelworld is expecting about a 45 per cent rise on the $4.6 million profit for the same period last year.

Company chief executive officer Michael Reed said the result demonstrated the resilience of Australian travellers, who continued to head overseas more than ever before.

"Despite increasing pressure on discretionary income from such things as rising petrol prices and interest rates," Mr Reed said.

The influx of low cost carriers bringing increased competition to the market hasn't dampened Qantas' outlook.

It is also expecting a surge in profits, upgrading forecasts to a 40 per cent increase in profit to more than $1 billion for the 2007-08 financial year.

But company chief executive Geoff Dixon has warned the profit outlook is subject to "no significant deterioration in operating conditions", including changes to fuel prices and currency exchange rates.

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