26 Sep 2021 10:00AM
President says competition among agencies means better deals for customers
KUALA LUMPUR – Consumers will be the ones at a loss if the government takes up the call by budget hoteliers to regulate online travel booking platforms.
Federation of Malaysian Consumers’ Associations (Fomca) president Datuk Marimuthu Nadason said online travel agencies (OTAs) now give consumers the benefit of choice, unlike in the past.
Competition among the various platforms means cheaper bookings for hotel rooms, as rival companies attempt to outdo one another.
Citing an example, Marimuthu said before the existence of OTAs, directly booking a single night’s stay at a five-star hotel could cost around RM600.
“But with these online platforms, you see that sometimes, there are promotions of up to 50% off the original rate,” he told The Vibes.
“Through these agencies, it’s easier to check if prices are lower during non-peak periods like weekdays,” he said, adding that consumers also have the option of comparing the prices offered by the different service providers.
He was responding to a proposal from the Malaysia Budget and Business Hotel Association for the government to regulate OTAs on the grounds that these booking agencies are eating into their profits.
Among hoteliers’ grievances is that OTAs are charging exorbitant sales commissions and activating promotions without their consent.
Malaysian Inbound Tourism Association president Uzaidi Udanis said regulating the agencies is unwise for Malaysia as it will limit competition, disrupt the industry, and make the country appear less attractive to businesses.
“While it is ideal to get the government to regulate the agencies, I believe the move will backfire. Other countries are adopting an open market, so you can’t expect us to cap the industry.”
Marimuthu said if hotels truly find OTAs to be a problem, they should stop using the platforms’ services and look for alternatives to promote their accommodation.
"They have to find their own ways. Sometimes, I feel you can’t be crying for everything. My advice is, if you want to do business, then you need to learn to be competitive and innovative."
“If you think you can’t adapt to changes, then perhaps, it is time for you to leave (the industry).
“We are not talking about basic necessities like sugar or cooking oil here. You can’t just always ask the government to intervene to ensure a fair price for everything.” – The Vibes, September 26, 2021
