It seems like Rocket Internet’s plan to take over the emerging market online business is becoming more apparent with every passing day, especially with the recent launch of their own hotel booking site – Jovago. For already established local players in online hotel availability and reservations, it may be time to up their game. The competition just got fiercer.
Operating a joint venture with telecoms operator Millicom, Rocket internet has birthed Africa Internet Holding (AIH) – a company with headquarters in Nigeria. AIH will oversee operations, starting with the launch of Jovago.com, a platform that is already has an inventory of 140,000 hotels available for reservations online, with only 200 listed locally.
This hotel booking site is one of five startups on Rocket Internet’s African online business portfolio, with at least three of such businesses, Jumia, Hellofood and Kaymu already active.
According to their about us page, “Jovago.com is an online hotel booking service headquartered in Lagos, Nigeria and founded by serial entrepreneurs from around the world. At Jovago.com, we aspire to provide our customers with the best hotel booking experience and with fast, reliable and easy-to-use services.”
Jovago has taken extra steps to ensure that each local hotel is personally examined by staff to get accurate details and to ascertain the hotel’s quality of service. The service seeks to solve the problem of hotel booking in a market which they regard as yet ‘unsorted’. Rather than having to book hotels at the point of arrival or routing the process through booking agencies, Jovago provides a convenient way for travellers to book hotel accommodation online. They also offer the option of paying at the hotel or using an online payment portal. All this is done without at no extra cost to the consumers, even though it takes a commission on each transaction from the hotels available on the platform.
Entering a space that already has active local players, it remains to be seen how Jovago.com would perform in the market. According to them, their advantage lies in their prior online marketing experience.
For keen observers of the hospitality business in Nigeria, the entry of Rocket Internet might give more credibility to the niche, but for existing players in the space, it could also mean more work. With about 10,000 hotels in Nigeria, this online hotel booking space seems like it could accommodate the competition.
One of Jovago’s main competitors, Hotels.ng, presently appears to be number one in terms of hotel booking in Nigeria. Boasting of over 4,000 listed local hotels on their platform, Hotels.ng has a good head start. According to Mark Essien, Chief Product Officer at Hotels.ng, “in the last four months, Hotels.ng has locally outgrown international brands such as Expedia and Bookings.com, along with local competitors, Wakanow and Nitestay.”
Although Rocket Internet may have a combination of deep pockets and experience in executing in the emerging markets, local players such as Hotels.ng, Wakanow and Nitestay can hold their own, especially if they choose to leverage on their knowledge of the local terrain.
