AMOMA Is Dead, Long Live To Rate Leakage!

It's official: AMOMA filed for bankruptcy and terminated all of its activities, "with immediate effect." The official reason, ironically enough, would rely on metasearch engines' shady business practices: on its website, in fact, AMOMA accuses "price comparators" to be nothing else than media agencies, "owned by companies operating in the same segment," leading to a "negative impact on free competition.

AMOMA Is Dead, Long Live To Rate Leakage!

Photo by Travel Singularity

It's official: AMOMA filed for bankruptcy and terminated all of its activities, "with immediate effect."

The official reason, ironically enough, would rely on metasearch engines' shady business practices: on its website, in fact, AMOMA accuses "price comparators" to be nothing else than media agencies, "owned by companies operating in the same segment," leading to a "negative impact on free competition." These comparators, the company continues, "unilaterally impose unsustainable financial conditions," in a Darwinian law of the fittest, where "only a very small circle of majors Online Travel Agencies can survive."

Most hotels will sigh with relief, as AMOMA is infamously known for undercutting hotel rates and/or distributing net wholesale prices, yet the battle for rate parity is far from won.

HotelBeds, for instance, already reduced its business with AMOMA to a slight 1% of all of its sales, and you've likely caught distributors such as Nustay, FindHotel, ZenHotels.com, Otel.com, and ebookers already following AMOMA's dirty footprints.

So, what will change? I'd bet that nothing will. Because the problem is not AMOMA, nor booking.basic, nor Expedia Add-Ons: these are only its manifestations. The real obstacle is the current, over-two-decade-old room distribution ecosystem, that relies (almost) entirely on cached, mutable, and modifiable data: until we fix distribution at its source (yup, talkin' 'bout blockchain distribution), AMOMA filing for bankruptcy won't make any real difference.

Please prove me wrong.

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Simone Puorto is a techno-philosopher, consultant with over 25 years of international experience, and the prolific author of five best-selling books exploring the intersection of technology and the travel industry.

Travel Singularity is a consultancy firm for hotels and travel technology providers whose vision is to solve the growing need for connecting the dots between digital disruption and existing technology. Founded in 2017 as a partnership of educational consultants, the firm actively supports cooperation between biological and artificial staff and advocates for an open, collaborative, hyper-connected industry where humans can flourish and innovate,...

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