Scope of budget hotel booking app like RedDoorz and their expansion in Southeast Asia
The budget hotel in Southeast Asia RedDoorz is the latest technology which is offering standardised and great value stays across the region. RedDoorz is the first asset-light budget accommodation brand which provides high-quality services and brand guarantee to its guests.
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About the RedDoorz :
The company was founded in the year 2015. The company was founded with a vision to create an ecosystem for travellers. The company is based in Singapore and it solves the problems related to accomodations.
They wanted to help the travellers to discover branded budget stays with a promise of high-quality services. The startup was founded by Amit Saberwal and Asheesh Saxena.
RedDoorz app helps the hoteliers and the guest house owners to present their properties over a responsive platform. This enables the hoteliers to reach a larger audience. They are also able to increase their distribution and earn a brand name for themselves. Being on RedDoorz app allows the hoteliers to streamline their operations. The precise Quality Check Points by RedDoorz guarantee that the guests are served with a uniform experience every time during their stay at any of the partner property.
Hotel booking industry stats in Southeast Asia : Current Hotel Market in Southeast Asia
A good hotel room is what makes the difference in your holiday. As the hotel market in Southeast Asia is very much unorganized. This has been a good opportunity for startups like RedDoorz to enter the market and conquer it in no time.
RedDoorz is a budget accommodation brand and service. The company offers hotels, resorts, inns, service apartments, B&B, and guesthouses. The company provides the hoteliers with the assistance to standardize whatever they offer. They also provide a platform where these services can be made available to the customers using the latest technology at pocket-friendly rates.
» Beginning with Indonesia
The Co-founder and CEO Amit Saberwal say that the company started as a B2B tech player for small hotels. They achieved much success and had 450 retail SaaS (software-as-a-service) customers. The company owners soon realized that they needed to be a brand to make a hotel renowned and popular to the customers. They wanted to make a difference on a bigger level.
The idea of RedDoorz was inspired by that of OYO rooms. They started branding properties when they realized this was the missing part of their business. They knew they had great tech distribution abilities but the brand was missing. By the beginning of the year 2016, RedDoorz started focusing on the Indonesian market.
The team claims to be one of the strongest online hotel marketplaces in Southeast Asia. They have provided services to over 700000 customers in Indonesia. They have covered over 3000 rooms in more than 17 cities. RedDoorz is working with smaller and independent properties which are a groove below mid-tier hotels. They look after and make the stay experience systematic and remarkable. The company tags the property of rooms depending on the deals with individual owners. RedDoorz claims to have over 500 properties in Indonesia.
» High margin business
RedDoorz started the business with Indonesia. Slowly, the company expanded to the Philippines. They are slowly spreading their wings across India, Singapore, Indonesia, and the Philippines. The company claims to have grown 11 times in the year 2016. The company now has a clear path to profitability for all Indonesian cities.
The CEO also claimed that RedDoorz has built a high margin business. The RedDoorz team claims to have almost 20 percent margins and has a repeat rate of over 65 percent.
RedDoorz has also completely automated the revenue management processes of properties by using machine learning. They have the automates processes for rates changing every hour depending on projected demand and booking velocity. The company has room tariffs start at 99000 Indonesian Rupiah. They offer 24-hour customer service and loyalty points. These loyalty points are called Red Cash.
» The Indonesian budget hotel market
The travel market in Southeast Asia is estimated at $60.6 billion. There is far more demand for accommodation than the supply at the prominent tourism and business hubs like Thailand, Bali, Singapore, Jakarta, and Kuala Lumpur.
The budget hotels in the Southeast Asian markets are combined with ZenRooms, Bespoke Hotels, Nida Rooms, and Tune Hotels. There are other companies like Oyo which is aggressively pushing into Southeastern markets with Oyo Rooms, Oyo Townhouse, and Oyo Homes.
» Significance and future plans
RedDoorz faces other competitions from large global and local hotel chains. But RedDoorz has an upper hand as it is totally tech-enabled. The company experienced potential in the fragmented budget hotel market in Asia – it was large enough and wasn’t about a “winner takes all” scenario. The company is also focusing on a solid business with good take rates. They are following a simple strategy. They enter into one city and make it work and then they jump to the next city.
The booking on the app and automated dynamic pricing has made them able to scale faster than any other hotel chains. RedDoorz is funded by Jungle Ventures, the Asia Investment Fund of Susquehanna International Group, and International Finance Corporation. 500 startups is also one of its early backers.
The four-year-old startup has declared that it has raised $70 million in Series C financing round. This comes only after when they have raised $45 million Series B round. This new round was led by Asia Partners and saw participation from new investors Rakuten Capital and Mirae Asset-Naver Asia Growth Fund.
The startup has raised $140 million till today and they have experienced a lot of interest from investors. The new funds are expected to help RedDoorz fight SoftBank-backed Oyo. Oyo is aggressively growing to new markets. Oyo currently runs in more than 80 nations.
Scope of Earning with RedDoorz Clone App
The CEO and co-founder said that he feels that Oyo’s success as a testament that there is room for more players to be in the space. He is very much confident about being on track to become the next unicorn in Southeast Asia.
RedDoorz serves a marketplace of “two-star, three-star and below” budget hotels. The company is selling admittance to rooms to people. RedDoorz has 1,400 hotels in its network. The startup aims to grow this number to 2,000 by the end of the year.
The company has accommodation of every kind and they deal in all kinds of properties. They have three-star hotels, some hostels and so they will continue to dig deeper and move forward.
Some of the new capital will also go into broadening RedDoorz’s tech infrastructure, building a second engineering hub in Vietnam as the first one is located in India.
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Now, that you have learnt about the budget hotel booking apps and their vast scope in the coming future, you can make up your mind to jump in the competition and make a mark in this space. Coruscate can help you to develop an amazing app for the hotel booking business and become your technology partner with our latest technology.
If you wish to ask for any further information regarding the features and the cost of development of the hotel booking app, you can connect with us and get a free demo of the on-demand hotel booking app.