Asia Web Direct meets Wotif.com

Earlier this year, two like-minded businesses came together in a strategic move that allowed both organisations to grow while preparing them to take the next step forward. But how does a business that began in IT services develop into one of the leaders of the online world, and what comes next for the honeymoon couple?

The merger between Wotif.com, an online accommodation website known for its last minute reservation system, and Asia Web Direct, an online hotel booking portal, was finalised earlier this year. For Wotif.com CEO and Managing Director Robbie Cooke it was a first foray into business in Thailand, and for the founder of AWD, Neil Cumming, it was a natural progression for the company he set up in 1993.

According to Neil, "It's always difficult to lose something, whether it's a daughter that gets married or a business that finds a match, but it was time. The market is maturing and the industry is changing, meaning the big players will become dominant. We had to either get big or stay in our shell." For Robbie, "The combination of Wotif.com and Asia Web Direct presents an exciting opportunity to secure a greater share of the Southeast Asian accommodation markets. This was one of the smoothest transitions that I have worked on, largely because both organizations have similar cultures and approaches to business. It also helped that there was quite a long courtship."

Asia Web Direct and Wotif.com - The Beginnings

Wotif.com is based in Australia and was launched in 2000. Originally it had only sixty properties but innovative ideas, such as a live hotel inventory and instant booking confirmation, immediately proved popular. In 2007 it took over travel.com.au and with the merger with AWD now has 13,000 properties in over 44 countries on offer, and offices in Australia, New Zealand, Thailand, Malaysia, Singapore, Canada and the UK as well as over 400 staff. 

The very existence of AWD owes a great deal to chance, as well as the tenacity and opportunism of its owner. Neil had already walked away from the corporate world once, selling his first business, Enterprise Airtime Systems, in 1983. With the money he made from the sale he bought a yacht and spent much of the next ten years sailing in various parts of the world. On his way from Hong Kong to Europe, where he was planning to settle down in the Mediterranean, he anchored in Phuket for a month while waiting for parts. "In that month I met people who thought I was crazy to leave, so I decided to spend another year or so here. That was 20 years ago."

"I had a computer on the boat and people kept asking me for help with computer problems. All the guys would bring me their laptops and I ended up fixing everyones' computer. People kept saying to me, 'why don't you set up a business so that we can start paying you?' So, within three months I had my son here and found some Thai partners."

In fact the 'marriage' between Wotif.com and AWD might never have happened as Neil recalls, "We almost merged with asiahotels.com but they were snatched at the altar. We actually talked to a few other companies but I wanted to find a partner who was doing what we were doing. We'd known Wotif.com for a few years and we liked the people; we liked the way they did things."

AWD's CEO

Although looking to take more of a back seat with the business Neil has joined the Wotif.com board, and AWD's CEO and his protégée, Jirapa Eawsakui, or Sii, as she is more commonly known, has assumed full control. A Thai national, Sii was working for Phuket Yacht Services in 1993 when she first came to Neil's attention. He recalls, "I walked in there at the beginning of January and this girl came up to me, called me by name, said 'Happy New Year! – Here's your bill' with a big smile and handed me my bill! I thought – that's the sort of girl I would like working with me." Neil then asked her boss at the time to let him know if she ever left.

It wasn't until Sii left Phuket Yacht Services to work at a hotel in Krabi that Neil was eventually able to track her down and persuade her to work for him. It turned out that Neil's original hunch was correct. Sii's local knowledge, people skills and organisational ability complimented his business experience and vision perfectly. By her own admission AWD's CEO has come a long way since then, "I've gone from learning how to use a computer to running the entire business."

The Thai Way

For Sii, the smile that bought her to Neil's attention has continued to be an asset throughout the following fourteen years. "I think Thai business culture differs from international business culture in that it's less confrontational and more persuasive. Things might take a little longer but they also tend to last a little longer. It can be difficult to generate initiative but is very rewarding to see the benefits once you do."

"In the time that I have been here we have grown from being a cottage industry into a multi national group and have also had to deal with a series of catastrophic events such as SARS, the tsunami and the coup. However I have always tried to solve any conflict the Thai way, with a smile!"

So what does Neil's self appointed successor foresee for the future? "So far we have been sailing along with the wind at our backs - 40% annual growth in revenue and 60% growth in profits. Now we want to put up more sails, get moving faster and really make some headway. Neil is not the only sailor here!"

Wotif.com's CEO and Managing Director

For Wotif.com's CEO and Managing Director Robbie Cooke, "It is particularly pleasing that Neil Cumming and Sii Eawsakul have agreed to remain on board. They both have a wealth of experience and vast knowledge of the Southeast Asian accommodation markets, having built Asia Web Direct up from inception of the company 15 years ago."

Robbie joined Wotif.com in January 2006 as the Chief Operating Officer, before becoming CEO and Managing Director in October 2007 following the retirement of Wotif.com's founder, Graeme Wood. Given the current political climate, did Robbie have any reservations about investing in a business based in Thailand? "Not at all. We first met the team at AWD more than two years ago and had a long time to get our heads around the business and to build a strong relationship with the management team. Combining the expertise in both our companies will well position the enlarged group to participate in the growth that is on offer throughout Asia."

AWD and Wotif.com merge

While both parties seem delighted that, after a long courtship, this marriage has finally gone ahead, for Neil the real beneficiaries of the merger will be the suppliers and customers, "On the supply side we will be able to provide our hotel partners with greater reach and increased sales for their inventory, while customers of both businesses will be able to access more product choice both within and outside Asia."

The marriage analogy is one that both parties keep coming back to and it is clear that both Wotif.com and AWD feel they have found their perfect match. So what does the future hold for the happy couple?  Robbie is optimistic, "The online accommodation industry is dynamic, fast paced and fiercely competitive and you have to constantly stay ahead in terms of product and innovations in order to remain at the front. Both AWD and Wotif.com were pioneers in their own markets for the selling of accommodation online and I think, together, we have a huge advantage over anyone else entering the market."