OTA Amoma ceases trading

US: The hotel booking website Amoma.com has stopped trading following “intense online competition.”

Visitors to the Amoma site are redirected to a full-page statement announcing its closure, which includes a warning to Amoma customers that bookings “will probably be cancelled by suppliers” due to the suspension of payments.

It has been advised that customers who have a future booking with Amoma need to contact their hotel directly to check whether reservations still stand.

Amoma reportedly had a reputation among hoteliers for selling out-of-parity B2B rates. “Amoma bought rooms from B2B channels at net price and used that nett margin to list lower rates directly to their customers. Our contacts did have clauses about selling nett rates B2C online – that’s why we’ve never worked with this travel agent,” remarked Rob Paterson, CEO of Best Western Hotels & Resorts.

Ludovic Cacciapaglia, assistant vice president of distribution at Shangri-La Hotels and Resorts, added: “Amoma’s closure should teach us that a strategy based only on offering the cheapest price does not guarantee conversion.”

Nicolas Durand, senior director of global distribution at Jumeirah Group, also commented: “Their closure is good news for hoteliers, but unfortunately, there are many other similar websites out there. This does not fix the main issue of leaky onward distribution. Hotels are giving too much margin to distributors. We need to carefully select the partners we work with and take them to task when we find their rates on this kind of site.”

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