Do I Need A Tat License If I Am An Online Booking Site?

[Milk]

Hi,

I have read all the threads regarding setting up a travel agency. What if I only do domestic hotels booking online? And maybe tour bookings ( I don't organise the tours. I just sub-contract out). will I still need a TAT license?

Also, do I need a TAT license in order to obtain a ATTA license? If I am not a ATTA member, will hotels still deal with me and give me an agent's rate? What if I just be a PATA member? WIll that be enough for hotels here to deal with me? I am not so much thinking of setting up a typical travel agency but more package vacations and location wedding planning.

Any kind of advice would be great or even interested partner (prefably with some experience in tourism) PM me and I can tell you more about my plans. I work in the media and have some pretty useful connections but at the same time, I am also aware that you only find out how useful your connections really are once you are in business!

[KronbergTH]

Hi,

Yes, you need a TAT license if customers pay to you. As I see it, you need a Domestic license. Then you only have to deposit 50,000 into a bank.

No, you do not need to be member of ATTA or anything but TAT.

But many hotels will not deal with website agencies, and you may get a bad contract rate. You properly need something more, if you want to be interesting for hotels as well as for customers. Because you cannot compete on prices.

Cheers, Robert

[Milk]

Thanks for that. I just visited the TAT website but it has no info. on how to go about applying for such a license. Where should I start? Go to their HQ and get a form or something?

[KronbergTH]

You need a Company Limited for applying for a license, and if you are director in the board, you need a Thai in the board as well. Normally, you cannot apply without a Thai in the board.

Furthermore, you need a work permit. The problem is that Labour Dept. often wants to see a letter from ATTA before issuing a Work Permit.

However, you can step out of the board during the process for obtaining the TAT license.

After you get the TAT license, ATTA cannot help you with Work Permit anyway, as you need 1,500 Inbound tourists a year (you are not inbound, so you cannot show coupons).

Talk to a lawyer how to deal with the Labour Dept as a travel agency, which is restricted for farang.

If living in another province than Bangkok or if you have a good lawyer with connections it may be a bit different.

/Robert

[thohts]

is it possible to purchase a pre-existing travel agency with a license? is the license transferrable?

[KronbergTH]

No, the license is issued for three years for a specific company and cannot be transferred, meaning it would be the same as applying for a new one anyway.

The license is for that company, and the bank guarantee is under that company name. However, you can run an agency under cover of a valid license, but it is not legal.

The company can be transferred and/or the board can be changed. The required Thai is only necessary upon applying.

/Robert

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[Milk]

Is there some sort of directory online (or offline) for agents to contact all the Thai hotels that are listed? Something like hotelexchange.com

I am sure there is a more efficient way than scouring the net and yellow pages to find the contact office of every hotel in Thailand.

Edited April 2, 2006 by Milk

[Digger]

Is there some sort of directory online (or offline) for agents to contact all the Thai hotels that are listed? Something like hotelexchange.com

I am sure there is a more efficient way than scouring the net and yellow pages to find the contact office of every hotel in Thailand.

I'd think of a new Idea if I were you. FYI, hotels are actively reducing the amount of re-selling they get involved in. In case your not aware, they are also pretty clued up to the advantages of the internet and most hotel groups and smarter individual properties are putting huge resources into streamlining their product availability and pricing through their own web based portals.

As a new entrant, your going to get squeezed very very hard - its a minimal margin business and the dynamics are changing very fast. Believe me on this I have worked in related industries for 20 years and know where this is headed. The days of offering wholeslaing rates to the world and their wife are long gone.

Think of it this way, if your a hotel manager, how do you want your product distributed? Probably the 40 largest re-sellers account for 50% of hotel bookings worldwide - they are protected (i.e the online big booking engines such as expedia and the big travel agencies, such as American Express and big tour operators - e.g TUI, Kuoni etc) - of the remainder, currently 10% is coming direct via the net and direct to the hotel, then you have some 10,000 smaller re-sellers accounting for about 40% of sales volume. The Net volume is probably growing 10 fold every year. Hotels are going direct with best in market pricing, they are finding that the costs and risks of dealing with the 10,000 re-sellers is becoming less important in their strategy. This has already happended at brands such as Holiday Inn, Hyatt, Hilton, Marriott etc who have special yield experts to look at these trends - it will continue to move into more mainstream properties. i.e if you look at Hyatt.com, they have a price guarantee that you will not beat the price on that property with live availability - some can match it (i.e the big 40 with their preferencial pricing) but the little boys cannot. However biggest benefit is that the manager is managing his own yield more effectively - these days, they do not need to give out room allocations and then wait two months, if at all, to get paid by the re-seller - they just charge it all to the travellers credit card directly.