Roamfree has been in the news lately with headlines like “Roamfree in Voluntary Receivership” and “Roamfree Offshoots Up For Sale“. What does it mean and how will it effect our industry?
My ‘guess’ from reading the news is that they’ve grown too fast and their business model didn’t cover costs. A classic dot.com bubble story – will they never learn?
Roamfree spent money like crazy to grab market share in the hope that they could ruin their competition and be the last one standing. They wanted to own Australia’s Travel Industry.
Roamfree says accommodations don’t need to fear losses on advance payments for bookings. “These funds are secure, not impacted by the administration and will be paid as normal”. Travel Agents are suppose to maintain trust accounting to protect hotels. So, no one should loose out from that prospective.
A lot of websites, Visitor Information Centres and other demand channels rely on Roamfree and their BookEasy products. I would guess they won’t let Roamfree go down too easily if they have a say in the outcome.
Our business (Web Reservation Systems) has always grown the slow way; using cash flow and providing strong customer service. We never borrowed money and gambled that we could win big. We missed out on some good deals as potential partners were drawn to the glitz of Roamfree as they splashed their cash around town.
Time will tell how the Roamfree debacle comes clean. Perhaps we will be rewarded for taking the slow and steady option. We certainly have a solid business, great products and willing attitude to help.
