There has never been a more exciting time to start an e-lodging business than now. Many online lodging agencies are springing up daily on the Internet. These provide e-consumers the ability to make online real-time reservations at hotels, resorts, apartments and hostels. The e-lodging agency operators earn a profit mark-up or commission fee on every booking.

Whether these new ventures are initiated by hotel reservation agents, event planners, Web designers, or hospitality industry executives starting home-based businesses, everyone is finding themselves caught up in the entrepreneurial spirit of the e-lodging industry.

What has led to this e-lodging agency boom?

First, there is the crumbling relationship between suppliers and traditional distribution channels. In a survey conducted by Forrester Research last year, only 6% of lodging suppliers stated that conventional Global Distribution Systems were adequately designed to meet their business needs. Many lodging suppliers are actively seeking new intermediaries to market their room inventory to Net consumers.

Then, there is the sharp downsizing in the travel industry. In an effort to be leaner and meaner, the hotel and restaurant industries had eliminated nearly 87,000 jobs by December 2001. Career-minded professionals can no longer expect job security the way they could in the past. Hence, it is little wonder that individuals with skills, self-confidence and motivation are setting up their own online lodging businesses.

Who are the new entrepreneurs?

The success rate is high for e-lodging agency startups by accommodation agents. These agents have strong links with the hotel industry. They traditionally market room inventory through their own reservation call centers. Some even operate websites with booking request forms. For many of these accommodation agents, making the whole reservation process online real-time, is a natural business transition.

Event managers and event planning agencies are also gravitating toward the e-lodging industry. The usual story runs like this - an event manager specializes in organizing casino hotel breaks for large corporate clients. He receives a good commission from the hotels for every sizable group booking he makes. He contracts with the same casino hotels to sell room inventory to online consumers through his website and.Voila! He's an e-lodging agent with a niche market! He now earns more commissions, incurs minimum overhead costs and has the ability to reach out to millions of e-consumers.

Another segment that has successfully entered the online accommodation arena are Web designers who build websites for hotels and resorts. After creating a series of such websites, the web designers go on to build online travel directories that link all the individual hotel sites together. The next step is to enable visitors to make reservations online in real-time at the hotels and resorts listed in the directory. Apart from the usual site development and hosting fees, the web designers earn a tidy commission for every booking that is generated through the directory.

As the concept of the home office continues to rise in popularity, many hospitality industry executives are launching home-based online lodging ventures. In the new economy, a PC with an Internet connection is all you need to get an e-lodging business off the ground. Armed with good contacts in the hotel industry and a thorough understanding of the local travel market, these entrepreneurs are successful in developing highly profitable lodging agencies on the Internet.

The e-lodging industry, which expands in size as it fragments in distribution, has created many real openings for enterprising individuals. The hardest task is not finding a business opportunity but making the decision to be an entrepreneur. If you have identified a niche e-lodging market that you can successfully serve, now is the best time to get moving!

About RoomsNet
RoomsNet (www.roomsnet.com) is a global network of e-lodging reservation specialists. We enable accommodation agents, event managers, travel agents, 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.

Uthpala Kumara
E-Mail: uthpala@roomsnet.com
Business Development Division
94-1-75-339769 Telephone
94-1-75-339776 Fax