I have heard today of another step in that move UPDATE (and this has been confirmed by John Fearon). Here is a screen shot from an email sent out to hoteliers today. It shows that AsiaRooms is moving to a commissionable model with directly contracted hotels at 15%.
I am sure this will be a challenging shift. While it may make it easier to contract hotels, setting up an effective accounts receivable department across Asia where none existed previously will be a huge challenge for AsiaRooms. While hotels will be happier with the pricing certainty on AsiaRooms, the commission model shifts the credit card fee and payment transfer cost to the hotel. Here a shot from the email. What do you make of this change?
Its true Asiarooms will change its business model in the future.
Vietnam hotels and resorts
Thanks for your input Vietnam Travel!
suspect the move is motivated by 2 key factors :
1. Cost reduction strategy : To Reduce Data Management Cost internally to keep the rates / inventory uptodate and Reservation teams
2. Increase speed for delivering latest rooms rates / inventory to their customer.
however, there are some flaws in this move as well....can u think what they are ?
nice blog. very nice!
@internet market services
bad spam, very bad!
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