AMOMA files for bankruptcy

Post originally Published September 15, 2019 || Last Updated April 27, 2020

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The hotel reservation platform AMOMA has ceased operations and filed for bankruptcy. AMOMA was one of the few booking platforms that did not belong to the Expedia or Priceline group.

AMOMA files for bankruptcy

What happened with AMOMA

AMOMA, the 3rd largest worldwide online reservations platform, was created to offer travelers the best value hotels at unbeatable prices. The site is available in 21 languages and offers over 230,000 properties in 200 countries. AMOMA provides a user-friendly platform for booking instantly accommodations ranging from hostels to five-star luxury hotels.

On Saturday, AMOMA stopped taking bookings and made a statement on its website.

What else is in this post?

  1. What happened with AMOMA
  2. What AMOMA had to say in its statement
  3. History with critics

What AMOMA had to say in its statement

“Your booking will probably be canceled by our suppliers.

Ladies and Gentlemen, Dear Clients,

Since its creation, AMOMA has always strived, with success, to find the best value for money for its customers.
Entities that claim to act as "price comparators" are, in effect, media agencies that redirect consumers to entities like ours against paying a cost per click. These media agencies are sometimes owned by companies operating in the same segment as ours, which has a negative impact on free competition. They are currently in a dominant position in the market and we think that this is to the detriment of the end consumers. Indeed, having taken the place that is theirs today, these entities unilaterally impose unsustainable financial conditions for us, because we work at the fair price to benefit our customers, not to benefit these media agencies.

The result is a market concentration in which only a very small circle of majors Online Travel Agencies can survive. You probably also know that the public authorities are currently opening investigation procedures against these entities, notably in Australia, Spain - and most recently, as reported in the press, in the United States.
However, these commercial practices that are unilaterally imposed on us make the continuation of our activities impossible. We, therefore, regret to have to inform you of the cessation of our activities, with immediate effect.

For those who have booked rooms via our website:

  • Contact the reserved hotel to inquire about the provision of the service.

  • Contact your payment institution or your travel insurance.

While we regret to have to announce the above, we send you, Ladies and Gentlemen, Dear Clients, our best regards.”

History with critics

Many hotel critics alleged AMOMA misused wholesale rates not intended for public consumption.
“Everyone knew this was going to happen. The question was not will it happen but when. You can find hundreds of bad comments from consumers in forums on TripAdvisor.” Guilain Denisselle, editor of French trade publication Tendance Hotellerie said in a statement.

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