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Increasing Its Asian Foot Print

Posted on: Monday, 7 July 2008, 06:00 CDT

By Cynthia Ann Peterson

MAKING TRAVEL AND HOTEL bookings online is now more popular, as customers become more Internet-savvy, and attractive rates tend to be offered when transactions are performed via the Web.

Wotif.com, an Australia-based company specialising in online accommodation which has a local entity called Wotif.com Sdn Bhd, is looking to expand its footprint in the region. A company founded by technologists has made a good name for itself in Australia and New Zealand. Travellers there use it more than any other accommodation website, claims the company, and its popularity is spreading to the rest of Asia. To galvanise its presence, Wotif.com's parent announced its acquisition of Asia Web Direct (HK) Limited, which has offices in Bangkok, Phuket, Koh Samui, Krabi and Kuala Lumpur. It has an inventory of over 4,000 hotels in South East Asia. Wotif.com's properties on the site is some 11,000.

The addition of Asia Web Direct to the Wotif family has given it a `nice balance' says Wotif.com's CEO and MD, Robbie Cooke.

It also enables the online accomodation expert to tap into the Asian market more effectively as the potential is definitely there. Bookings for hotels made through the Web in the region was around 3% in 2006.

According to Cooke, there are several challenges that face the company, including dispelling the fear that such transactions online are not safe.

`Airlines have educated the market in this respect, and it is one of the safest ways to book. It will take time for people to get used to it,' he says.

But the biggest challenge, says Cooke, is getting the company recognised in the market.

`The brand is not there yet, and our challenge is to get people to know we exist. In Australia, it was like a whispering campaign, and our brand got recognised over time,' he says.

In Asia, Cooke is confident the company is well-positioned to also create awareness of its service, and he says it is all about great rates, value and breadth of hotels that can attract this market.

`We will build the brand from there,' he says.

HOMEWORK

Many travellers who do book online also tend to research their destinations on the Web. Past experiences by others posted on blogs, for example, help some people make a decision on their accomodations or itinerary. The Asia Web Direct portal enables travellers to learn about destinations and other relevant information. It is these little extras that can earn customer loyalty, and Jirapa Eawsakul, Asia Web Direct's CEO (who remains in the position post company acquisition) says that it is important to stay ahead of the industry.

Wotif.com has just entered into an agreement with Prevu Corporation to offer videos of properties on its site. This offering has been taken up by hotels in Australia, and is slowly being taken up internationally.

Being ahead of the competition probably has allowed the company to flourish where so many dot com enterprises have failed.

`We have a business model that works. A lot of businesses in the past were interesting, but did not have viable business models. We are selling accomodation, and it is important for us not to lose focus,' says Cooke.

Hence, the company is not venturing into brick and mortar outlets.

The company does not see hotels offering their own accomodation booking services online as competition, as Eawsakul says that the company has `a good relationship with hotel chains, and these chains realise they cannot do everything themselves.'

(c) 2008 Malaysian Business. Provided by ProQuest Information and Learning. All rights Reserved.

Source: Malaysian Business

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