Asiatravel.com Holdings, the pan-Asia online travel and hotel reservation service provider, posted a net profit of $1 million for its 1QFY2010 ended 31 December 2009, a drop of 21.8% on-year. Revenue fell 6.5% to $18.9 million from $20.2 million.

Asiatravel.com says although the economic recovery is moderating the decline in average hotel room rates in 1QFY2010 compared to the rates in the last two quarters of FY2009, the average room rates are still about 15% below those of 1Q FY2009.

But with the drop in hotel room rates slowing down in the quarter, Asiatravel.com expects the strengthening in the rates to continue into the next few quarter. It says the better rates will provide a positive impact to the group’s revenue in the second half of FY 2010.

Meanwhile, Asiatravel.com has launched its online all-inclusive travel packages products for tourists coming into Singapore which provides instant confirmation and is in the process of launching such packages to all major destinations in Asia.

The group is also gearing up to launch its online B2B hotel and package platform targeting the travel agency networks to drive volume to grow its business.

It also plans to run regular shuttle services from the airport to city hotels and city hotels to Resorts World at Sentosa and other major attractions.

Asiatravel.com says it has received enthusiastic online response for its Universal Studios packages.