B2B hots up in Asia

Date: 17 October 2012

B2B hots up in Asia.

B2B PLAYERS are expanding in Asia, eager to feed rising demand from both brick-and-mortar agencies and OTAs.

Singapore-based Asiatravel.com, a pioneer in B2C in Asia, has unveiled its TAcentre.com, Asia’s first online wholesale system that offers not just hotels but FHTs (flight/hotel/tours), which can be booked with instant confirmation. TUI Travel’s Hotelbeds will unveil expansion plans in Asia-Pacific on Wednesday, while another wholesaler, UK-based Jac Travel, aims to open an office in Asia by year-end. It recently appointed a head of sales for South-east Asia, Ali Jones.

A continued travel boom in Asia despite slowing economic growth is ensuring the longevity of brick-and-mortar agencies, according to Asiatravel.com executive chairman Boh Tuang Poh. Jac Travel too said its growth was coming from a mix of wholesalers, travel agencies and new Asian OTAs.  

B2B players are jostling for a position as the competition heats up. TACentre banks on having the best rates and widest inventory. Its 17 years of local presence throughout Asia has helped it seal “real” relationships with suppliers, said Fred Seow, vice president-marketing. “Agencies face two issues, rising costs and manpower difficulties. Customers meanwhile want varying places – their demand exceeds agencies’ operational readiness. We hope to fill this gap by offering the widest inventory and best rates, which can be booked 24/7 online with instant confirmation. This frees the agency to do what it does best, i.e. service the customer,” he said.  

Seow said the inventory comprised 100,000 products (including packages, hotels, flights and tours) and the aim was to boost this to one million products by 2013. Currently, there are 44 FHT packages for Singapore to Hong Kong alone.  

Jac Travel’s CEO, Mario Bodini, said the company intends to compete by offering excellent customer service and a wide range of handpicked, independent boutique hotels rather than contracting all hotels. “The market is tough, with lots of barriers for new players such as having the right technology, working capital and the correct product range,” he said.  

Agencies interviewed said they use both traditional and online wholesalers, often comparing products, prices and availability.

Lisa Alip, managing director of East Coast Adventure Travel & Tours in Johor Bahru, said: “We look for the best deals and convenience. Right now, I think only TACentre offers instant confirmation, so that’s an edge.”

Morteza Khodaparast, executive director of Gloree Tours & Travels Singapore, said he preferred Asiatravel as its customer service was excellent. “If we need to make a change in booking, for example, they are flexible.”

Raini Hamdi, reporting from ITB Asia, Singapore

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