Roomseeker takes on the big boys

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8/11/2006

Roomseeker takes on the big boys
Melissa Hadley

new online accommodation provider plans to take market share away from Wotif.com and Lastminute.com by offering distressed stock to business travellers.

Roomseeker.com.au general manager Anthony Chahoud said his online venture – due to launch on November 6 – would differ from current players by only offering accommodation seven days in advance instead of the 28-day period offered by Wotif.

Chahoud argued this strategy would give him “bargain accommodation deals” because his suppliers needed to fill vacancies fast.

“We’re targeting the very last minute market,” Chahoud said.

Telemarketers are currently calling all hotel, motel and resort-style properties in the country to sign deals to get their distressed stock on the site.

More than 50 have already come on board, including Rendezvous Cable Beach and Hotel Grand Chancellor Melbourne, but Chahoud said he needed between 200 and 250 to remain viable.

Chahoud will rely heavily on online marketing strategies such as search engine optimisation with Google and Sensis to raise brand awareness, and will also advertise in print and on outdoor sites.

Roomseeker customers pay a 5 per cent deposit on booking their accommodation on the site, and then pay the balance directly to the property when they check in.

Chahoud, who has a background working in media sales for Sensis, said he would be competitive by having the lowest booking fee in the market at $1.50, but denied the market was already well serviced by established players.

“There’s absolutely room for another one in the marketplace. The industry hasn’t stalled at all and accommodation is always in demand,” he said.

However, Wotif.com managing director Graeme Wood said the idea had beendone before and Roomseeker was not offering the market anything different.

“One starts up every week and one disappears every week,” Wood said.

“It’s like going out and starting another hamburger joint: that’s been done before and it’s the same with distressed inventory,” he said.

8 November 2006

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