London, UK – February 2003 - The London online hotel market, though young and fragmented, promises to be one of the most lucrative in 2003. The city is attracting more and more online travel consumers who use the Internet when booking hotels, hostels and B&Bs. Savvy hospitality entrepreneurs are cashing in on the market opportunity created by this shift in buyer behavior by setting up specialized online agencies.

Launch an online lodging agency – the time is right

This is the best time to launch an online hotel reservation agency in London, as the market is relatively easy to break into. The British online lodging industry is far less consolidated and regulated than the US one, where the top 5 agencies account for nearly 85% of the online travel agency market. London attracts a varied collection of leisure and business travelers with diverse travel needs. There’s plenty of opportunity for many specialized reservation agencies to thrive in this market, as there are many niche consumer groups to target.

The other good news for anyone planning to launch an online hotel reservation agency in London is that, Europeans are getting affordable Internet access and are becoming more comfortable booking online. London receives a large number of hotel bookings from neighboring European countries. The online travel industry in Western Europe, for the year 2002, is estimated to have grown by 2.2% from the previous year. This would amount to USD 5.7 billion in sales.

Specialize! Specialize! Specialize!

Online hotel buyers are typically aged between 33-44 years, fall into a high-income bracket, are well educated and spend 250-750 Euros per trip. They also fall into many sub categories such as affluent leisure travelers, business travelers, couples on their honeymoon etc. Online travel buyers are extremely savvy when it comes to selecting the right hotel room that fits their needs in terms of price, dates of arrival, location, and amenities.

These smart consumers need smarter vendors. Entrepreneurs who plan to set up online hotel reservation agencies must keep in mind that it is impossible to cater to the needs of the entire London tourist market. A smart vendor would first select the consumer segment that he can serve best. This could be anything from business travelers looking for hotel rooms with Internet ports to backpackers hunting for last minute deals. Once the target segment has been decided on, the online lodging agency can be designed to maximize the benefit to that group. Web consumers are quick to identify websites that offer their preferred hotels at competitive rates along with expert detailed information. Specialization creates loyalty and popularity among the chosen travel community. It’s all about fishing where the fish are, using the right fly.

Niche online agencies that offer a particular type of lodging are more successful at managing their inventory and rates than large online distributors. For example, a reservation agent who specializes in business hotels in Central London will develop close ties with those properties overtime and will be able to obtain larger room allotments at competitive prices. He can then tailor the room availability and prices on his website in-line with major business conventions and exhibitions and run special offers and promotions to attract more traffic during such events.

Hospitality professionals, who have experience in hotel reservations and management, are best suited to operate online hotel reservation agencies. Having close ties with the hotel industry in far more important than being Internet savvy.

Setting up a specialized online hotel reservation center can be technologically challenging, expensive and risky. RoomsNet International, which operates a global network of online lodging agencies, helps you to successfully overcome all those issues when setting up a new Web based hotel reservation agency. Owing to the presence of a network of agencies, RoomsNet International is able to absorb all the start up costs and risks of each new venture. The agency operator is then free to develop his chosen niche market and maximize profitability of the agency.

If you are looking to capitalize on the exciting opportunities of the London online lodging industry or require further information please contact RoomsNet through the following links.

http://bookings.roomsnet.com/servlets/ROOMSNET_new_contact_form?BI=&MI=

roomsnetsales@roomsnet.com

About RoomsNet International

RoomsNet International is a global network of online lodging reservation specialists. RoomsNet enables accommodation agents, event managers, hospitality professionals, tour operators, hotel reservation call-center agencies and entrepreneurs to setup niche online reservation sites and cater to the growing demands of the online lodging industry.

Contact:

Email: uthpala@roomsnet.com

RoomsNet International