Calls for probe into offshore motel booking sites

CLICKED: Barry Mabey, Rotorua Association of Motels president, said its website was getting views. PHOTO/STEPHEN PARKER

Rotorua motels are forging their own path through the online booking market, as the Motel Association of New Zealand calls for an investigation into the role of offshore booking sites.

The association's chief executive, Michael Baines, said offshore travel giants were handling about a third of sales for the motel sector, a figure set to continue growing. He said the Government needed to step in to ensure overseas companies were adhering to local laws.

The Rotorua Daily Post reported in April that the Rotorua Association of Motels had launched its own website to compete with unregulated, third-party booking agents who took a cut out of sales.

Rotorua association president Barry Mabey said he hoped to see an increase in traffic after three months.

"It's a three-month projection before we start seeing too much ... it will show benefits."

He said they were continually making changes to the site, and hoped it would be complete by summer. "Having said that, it did appear we have had a couple of bookings off it, and the website is starting to get views."

Mr Mabey said third-party booking agents were shaving their bottom line.

"The worst part is customers who you have previously looked after, who go to book with you again, will Google you and make a booking [through a third-party website] and they actually think they are booking with you."

Mr Baines said many of the offshore booking companies skirted fair-trading laws.

"For example it's common practice for these sites to inflate the advertised prices of New Zealand motels, in order to be seen to be offering a discount when they are booked at the correct price."

Motel owners had few options: "They (overseas operators) are not paying tax so none of that money goes into the New Zealand economy, they are just milking it. I don't know what we can do to stop it. We would support any intervention."

The Rotorua motels' website is www.rotoruamotelbookings.com.