Online travel booking is hip

Prasanna Raman; Siti Syameen Md Khalili
New Straits Times
08-16-2007
Online travel booking is hip
Byline: Prasanna Raman; Siti Syameen Md Khalili
Edition: Main/Lifestyle
Section: Tech & U

PLANNING for a holiday no longer means scouring the newspapers or travel magazines and hoping to find some holiday package on offer. In today's internet age, many people are turning to the Web, which lists Web sites and online travel agencies that offer not only tour packages but also airline tickets, land transport and accommodation to suit the discerning needs of the modern-day consumer.

Phone calls to make reservations and queues at counters to buy airline tickets and holiday packages are gradually being replaced by simple clicks of the mouse to do the same. no doubt, online booking for travel is here to stay.
According to Malaysian association of tour and travel agents (Matta)'s president Ngiam Foon, online travel booking has seen good growth in recent years. Although Matta is unable to quantify the growth rate, he says it is on the uptrend because going for holidays and booking those holidays online is part of the modern lifestyle of the younger group of working adults.

And while this group makes up the general profile of customers who do online travel bookings, ngiam points out that the profile does vary depending on the product or service offered online.

"If it is for air tickets to domestic and Asean routes, for example, customers would actually be just about anyone who has access to a PC with an internet connection to make online bookings. Other than that, the travel bookings are usually done by young working adults and those ages up to their 40s."

Online accomodation booking services provider HolidayCity.com agrees that its Web site records a turn to page 4 higher usage by those in the young professional bracket. But its chief executive officer lee lai Huat says the online travel industry in the country is still in the early stages of growth and that more competitors, new technologies and improved capabilities will eventually come into play.

He points out that the increase in popularity of online room bookings among consumers is evident from the rise in the number of hotels and other types of accommodation that consumers seek.

Quoting figures from Holiday-City's business growth, lee says from just a small number of hotels, the Web site today offers consumers over 14,000 hotel choices in over 800 destinations worldwide.

"There was a 77 per cent increase in the total number of bookings made by Malaysian customers from January to June of this year, compared to the same period last year. this translates into a total booking value of approximately RM2.1 million, or a 79 per cent increase from last year's figures."

Also, asian travellers are becoming increasingly aware of the advantages of making online bookings.

"They are certainly conscious of the value savings that the internet provides, although most have yet to be converted to bookers from lookers. Many people still use the internet to search for destination information," Lee says.

"The increased popularity and cheaper access to more regional destinations offered by low-cost carriers also creates a ripple effect in the online travel industry."

Reiterating that the online booking industry is still in its infancy, he says the industry is looking at enhancing customers' online experience and helping them solve their concerns as well. Although the main issues include concerns about security, exchange of personal information in cyberspace and scepticism that the reservations made may not be processed correctly online, plus the perception that the offline booking method is still easier, almost all of these concerns have been addressed by industry players.

"Many online travel agencies, including HolidayCity, have resolved these main concerns through the implementation of simple elements on their Web sites such as a well-versed and visibly posted site security information and privacy policy, by introducing lowest- price-guarantees, improving the booking engine functionality, providing the actual descriptions that lead towards the reservation process in order to alleviate the fears of misplaced reservations or difficulties to change reservations, as well as making available customer service personnel 24x7 to look into their needs," Lee elaborates.

Credit card security fears, he adds, have declined over the years, unlike privacy issues that continue to bother customers.

HolidayCity, Lee highlights, has successfully addresssed the issue of online credit card transaction through its distinct business model whereby it does not accept payments online as customers are expected to pay directly to the hotels upon check-in or checkout.

"We are also working continuously to enhance our customers' experience online by upgrading our Web site to make it more attractive and comfortable to use as well as addressing all concerns with improved functionalities," Lee explains.

(Copyright 2007)