VietNamNet Bridge – While booking hotel rooms through online travel agents (OTA) is a growing tendency in the world, which has gradually replaced the traditional ways, the OTAs in Vietnam are still facing big challenges when trying to change Vietnamese tourists’ habits.
|
A report of Euromonitor International showed that online hotel room booking
accounted for 35 percent of the total rooms sold 2 years ago, while the figure
was 20 percent in Australia.
Of the many ways tourists can use to book hotel rooms, OTA has emerged as a
convenient and favorite way.
Not only for convenience, OTA also can bring a big benefit to tourists – the
lower hotel room rates than any other traditional ways.
In general, OTA can provide hotel rooms at the lowest possible rates. The good
hotel room rates can also be obtained by travel firms, enterprises and the
clients who book rooms directly on the hotels’ websites. Meanwhile, current
guests would have to bear the highest rates.
OTAs can book hotel rooms at the lowest rates because they can bring stable and
regular sources of clients to hotels. Therefore, OTAs or travel firms can
request hotels not to sell rooms at the rates lower than the rates offered to
them.
As such, if booking rooms through OTAs, travelers can enjoy the lower hotel room
rates.
The big OTAs in the world such as Booking.com, Agoda.com all have signed
contracts with hotels in order to obtain the best prices. They also can request
hotels to reserve certain numbers of rooms for them. OTAs can also cooperate
with online room wholesale companies, such as Pegasus Solutions, in case they
still cannot sign contracts with hotels.
While Booking.com nearly covers the whole European market, Agoda.com has been
very strong in Asian market. In Vietnam, Agoda.com has launched the Vietnamese
version since 2010, while it reportedly cooperates with more than 2,000 hotels
in many provinces and cities nationwide.
Booking.com and Expedia.com have also jumped into the Vietnamese market.
However, they have been reportedly targeting the foreign tourists who plan to
travel to Vietnam, rather than Vietnamese travelers.
More and more Vietnamese OTAs have also appeared on the market, targeting
Vietnamese travelers.
However, observers said OTAs are still in their period of the market
development. In order to attract more clients, the domestic OTAs such as
Chudu24.com, iVIVU.com or Vinabooking.vn need to change the Vietnamese
travelers’ habits. The majority of Vietnamese still don’t want to book hotel
rooms online or through agents.
A survey conducted by iVIVU.com in September 2012 found out that 65 percent of
polled tourists said they contact hotels to book hotel rooms, while they don’t
want to go through a third party.
The survey has also pointed out that Vietnamese prefer making payment directly
to hotels or agents in cash to bank remittance or online payment.
Another challenge for domestic OTAs comes from the world’s giants in the fields,
namely Agoda.com, Booking.com and Expedia.com. The foreign firms, with their
experiences and large networks all over the world, can offer low prices to
clients. Meanwhile, Vietnamese OTAs cannot have the advantage, which means that
they are inferior to foreign firms in the price war.
A senior executive of iVIVU.com said the firm has well aware of the challenge,
therefore, it has decided to follow its way to develop. iVIVU.com now focuses on
exploiting the less-than-3-star hotels in Vietnam. It is estimated that there
are 7,000 such hotels, but only 500 have the room online distribution services.
NCDT