Asiatravel.com Holdings, the pan-Asian online travel and hotel reservation service provider, posted a net profit of $1.1 million for its 2QFY2010 ended 31 March 2010.

Lower room rates and lower visitor arrivals in key destinations Thailand and Dubai caused a 5.9% dip in 2QFY2010 revenue to $17.4 million, and subsequently resulted in the drop of 40.9% in net profit from $1.8 million in 2QFY2009.

Sales in the group’s two key destinations, namely Thailand and Dubai, were affected by political and financial issues. In Thailand, protests and demonstrations from the on-going social unrest have resulted in lower visitor arrivals, thus affecting hotel occupancy. The group believes that this situation is unlikely to improve in the next quarter. In Dubai, the financial crisis caused a reduction in business and leisure visitors. In an attempt to attract visitors to improve occupancy, hotels were pressurised into lowering room rates.

Looking ahead to FY2011, Asiatravel.com expects the group to move beyond these problems.