Bidroom, a no-commission membership-based hotel
platform, is looking to expand its portfolio within the Asia
Launched in 2014 in the Netherlands, Bidroom
currently offers 125,000 hotel properties in 128 countries.
For the past five years, Bidroom has
focused on building its hotel stock in Europe and North America.
Now it is time for hoteliers in Asia Pacific to benefit from Bidroom’s unique approach, says COO and
co-founder Michael Ros.
“Bidroom works as an annual membership
model, whereby hotels only pay a contribution after proven
success,” said Ros. “This substantial saving is shared with the
online frequent traveller who will subsequently be paying a
guaranteed lowest-available price. Bidroom is demonstrably cheaper
than all known OTAs. The result is also a significant margin of
financial improvement for hoteliers.”
Hotel industry analysts say that smaller hotels
can rely on OTAs for up to 90% of their bookings, but at
commission rates of up to 25%. Heavily-capitalised OTAs control
the online hotel room market because they spend heavily on search
terms. There is also often an illusion of online competition in the
online market place. Expedia, for example, owns around 12 OTA brands while
Priceline Group owns Booking.com, Agoda, Ctrip, and Priceline.com,
According to Horwath HTL there are an estimated
four million hotel rooms in Asia Pacific and, according to STR,
the region has 471,000
new rooms under construction, a year-on-year increase of 27%.
Hotel profits are already under pressure in Asia
and Pacific destinations with new openings in arguably
oversupplied destinations such as Thailand, Vietnam, Indonesia and
Maldives. Reducing OTA commissions is therefore vital to hotel
viability, says Ros.
“While online travel will continue its massive
expansion, especially in Asia,” he said. “The honeymoon period
with OTAs using manipulative techniques must end. Bidroom stands
apart as a more profitable and fair-minded booking solution for
hotels in the region.”
Bidroom requires users to sign up before the
display any hotel rates. It also sells monthly, yearly and
lifetime memberships so that travellers can “save even more” when they
book a hotel through the website.