Wednesday, May 22, 2013

Voluntary Liquidation for

The news that Australian accommodation website has been placed in voluntary liquidation doesn't change my view - but it does make you wary and is a heads-up that even established OTAs are volatile in an environment of rising business costs, increasingly aggressive competition and customers' rapidly changing whims.
"Popular Australian accommodation website – which claims to have taken one million bookings since it was founded in 2002 – was today placed in voluntary liquidation and is no longer processing new bookings.

An email sent to the industry said there'll be a creditor's meeting in June and told hoteliers that if they are holding "future bookings to please contact the guest to arrange direct booking and payment.
"For a refund to be issued, please advise the guest to submit a claim to their credit card provider," the email said.

"If their credit card provider is unable to assist in providing the guest with a refund, the guest should contact the liquidator, Holzman Associates for further assistance."

Liquidator Manfred Holzman said he'd been only given the job today and declined to comment on the number and nature of creditors. was founded by Managing Director Simon Isaacs 11 years ago.
The site has historically performed well in terms of traffic with Mr Isaacs telling in 2010 that it was attracting 450,000 unique visitors a month.

However, at the time he said rising search engine marketing costs had become a major challenge for the business.

As result, increased commission to 15% to give it the extra funds it needed to better compete with the multi-national online travel agencies.

Mr Isaacs was contacted for comment but has not yet responded."
Source: Click HERE

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