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Vietnam: Hotels complain about paying commissions to foreign booking firms
“We are losing in the home market. Hotel owners feel pain when having to pay commissions of 30 percent to foreign companies,” said Ngo Minh Duc, founder and president of GOTADI.
Duc spoke at a workshop on digital transformation in the tourism industry held on April 2, within the framework of VITM (Vietnam International Travel Mart) Hanoi 2022.
Hoang Quoc Hoa, Deputy CEO of the Tourism Information Center under VNAT, said digital transformation is an urgent requirement for the global tourism industry, including Vietnam.
Vietnam has been using a high number of technological products in tourism, such as the information dashboard system; databases about tourism industry for management agencies; Covid-19 safety self-assessment and registration system; the Safe Vietnam app; a smart travel card for travelers; and an electronic ticketing and management system for attractions.
At Van Mieu–Quoc Tu Giam, for example, Director of the Center of Scientific and Cultural Activities Le Xuan Kieu said with the support of VNAT and technology firms, Van Mieu – Quoc Tu Giam has been developing an electronic ticket sale system, which is expected to become operational in April.
The system will allow travelers to make contactless transactions, and help the management board for relics to better manage the ticket sales.
As a pioneer in digital transformation, GOTADI’s Duc noted that this is a thorny and costly path, which requires resources and patience.
The development of Vietnamese digital platforms has important significance in helping Vietnam’s businesses cut costs during the application of technology.
However, Duc noted that information technology applied in Vietnam’s tourism industry is still at a very low level compared with the rest of the world. In the aviation sector, e-tickets have been used for 20 years.
Duc praised the tourism sector’s strong determination to digitize, because, if not, it will become out of date and lose competition with other countries.
“We are losing right in the home market. Hotel owners feel a pang when having to pay commission of 30 percent to foreign companies when selling rooms via Agoda or booking.com websites,” he said.
Duc mentioned OTA (Online Travel Agent), which provides products and services on online platforms. More than 70 percent of hotels in Vietnam are selling rooms via OTAs. At many hotels, the room booking from OTA accounts for 50-60 percent of total revenue.
Meanwhile, global OTA brands such as Agoda, Booking, Traveloka and Expedia hold 80 percent of Vietnam’s market share. Vietnam has about 10 such OTA companies, including Ivivu.com, Chudu24.com, Mytour.vn and GOTADI.
Ngoc Ha
Source: https://vietnamnet.vn/en/hotels-complain-about-paying%C2%A0commissions-to-foreign-booking-firms-2005986.html