UK hotels launch online booking

Three major hotel groups are building a joint website enabling customers to book hotel rooms online, adding to the backlash against online travel agencies.

Granada's Forte Hotels, Hilton International and Accor said yesterday they are investing 20 million euros (£11.7m) in the site, which will go live in the last quarter of this year. They expect other European hoteliers to join them soon.

The site will initially sell hotel rooms within Europe.

Groups including Hilton, Marriott, Hyatt and Bass - the owner of Holiday Inn and Intercontinental - are expected to launch a similar US service in June.

David Michels, chief executive of Hilton International, said internet bookings will reach around 15 per cent of the total over the next two to three years. "For our shareholders, we must ensure that the inventory remains under our control," he said.

Hotel groups are not alone in wanting to regain the initiative taken by online travel agencies such as Lastminute.com or US rival Travelocity.

Daniel Lord, ecommerce analyst at Datamonitor, said a joint project by 28 airlines to sell tickets online has been nicknamed T2 - apparently short for 'Travelocity Terminator'.

"Companies like Lastminute do charge commission on the products that are booked through them, so if the hoteliers and airlines start doing this themselves, they can remove this [commission]," said Lord.

Despite negative publicity regarding its stock market flotation, Lastminute is expanding rapidly. On Monday, it announced a joint venture website with South African travel agency, Tourvest.

The company already has similar deals in Australia and New Zealand, along with expansion plans for Spain and the Netherlands.