Kontan Online


Hotel association to launch Airbnb competitor

Thursday, 30 November 2017 | The Jakarta Post

KONTAN.CO.ID - JAKARTA. The Indonesian Hotels and Restaurants Association (PHRI) has said it will launch an online travel agent (OTA) that will be used by hotels and restaurants – both members and non-members – to compete with global hospitality marketplaces like Airbnb.

“We are constructing the platform. In fact, it is nearly completed. What’s left is just naming, of course we need an eye-catching name,” said PHRI deputy chairman Rainier Daulay in Jakarta on Wednesday (29/11) as quoted by tempo.co.

Hotels and restaurants would pay less than what they pay for for foreign OTAs, said Rainer, adding that the members would also pay less commission to the PHRI.

Currently, the existing OTAs demand between 15 to 30 percent commission from hotels, while Airbnb charges only about 3 to 5 percent.

He said the PHRI’s OTA would facilitate its members in using existing technology to boost their businesses and cut promotion costs.

He cited as an example how online technology had helped emerging tourist destinations like Raja Ampat in Papua to become well-known by both Indonesian and foreign tourists.

If the hospitality business failed to use technology, it would be unable to complete with those who did, Rainer added.

He said the operation of Airbnb in the country had seriously affected the conventional hospitality business, particularly three-star hotels because with the same service Airbnb could offer much lower prices. (bbn)

Reporter: The Jakarta Post
Editor: Sanny Cicilia