Online booking system calls time out

A travel online booking engine, Asiativ, Group, has suspended operations, until it secures reinvestment, possibly by the end of September. The system is a member of one of the region’s largest inbound tour operators, Asia Online.

A message “under maintenance” appears on the front page of the Asiativ.com website and the contact telephone lines are out of services.

Using Google, it is still possible to view page content, but links to the home are inactive.

“We have suspended all operations,” one of the online portal’s shareholders, Luzi Matzig, told TTR Weekly. Mr Matzig is also the CEO and founder of Asian Trails Ltd.

“Until we find a new investor for Asiativ, the site is inactive because it is very difficult to have positive cash flow in the current economic climate.”

He believes the website could resume operations soon.

“I am confident we can find a new investor by the end of September.”

Asiativ was forced to suspend operations due to a massive 80% drop in bookings, after Bangkok’s airport closed, last year. But more trouble followed in early 2009 as economic woes continued and the swine flu scare hurt travel confidence.

Mr Matzig blames the decline on a global economic recession that he says reduces dot com bookings, worldwide.

“People cancel trips and ask for refunds and it is difficult for dot com companies because they get money today and have to pay tomorrow,” said Mr Matzig.

When cancellations hit the system, the refund process used to reimburse dot.com companies is too slow. The delay causes a substantial cash flow burden for dot.com companies as they live off wafer thin margins.

According to an Asiativ’s press release, dated 29 December 2008, Asiativ managing director, Dror Meytal forecast the company was heading into a very a tough year.

Although the portal launched a bonus night promotion campaign in Australia to sustain growth, earlier this year, it proved insufficient to sustain operations.