Wotif to square off against overseas competitor

Recent reports have pointed out that Australian retailers are struggling to gain ecommerce market share from international competitors; however, there are a number of homegrown ecommerce sites that are success stories. Wotif, an online retailer catering to Australian travelers looking for last-minute accommodations, is one such site. However, Wotif could be facing stiff new competition.

The retailer offers rooms all over Australia and internationally, helps consumers compare flight prices and browse peer reviews from previous travellers. Wotif aggregates information from other sites to make it a one stop shop for information, purchasing options and booking arrangements for online shoppers.

According to Scott Phillips, featured columnist for the financial services website The Motley Fool, other ecommerce sites have taken note of Wotif's business model and are working to compete for the Australian market. For example, U.S.-based Roomkey is owned and run by a coalition of accommodation chains including Hilton, Hyatt and Marriott. Even as Wotif continues to book its customers rooms at these hotels, these companies are preparing to launch a competing ecommerce site.

Phillips posited that in order to compete with Wotif, Roomkey must develop a loyal consumer base that uploads peer reviews to enhance the user experience and offer value similar to Wotif's site.