RedDoorz announced today it will reach 1 million occupied room nights by December 2019, a result of the business doubling in size every six months. As of July 2019, RedDoorz is growing five times year-on-year with operations across more than 52 cities in four countries in Southeast Asia. Most recently, it has reached 500,000 occupied room nights, an industry-first in Southeast Asia travel category. This latest achievement cements RedDoorz’s position as leader in Southeast Asia’s highly competitive affordable travel space, surpassing global competitors.
The milestone was announced by the RedDoorz founder and CEO, Amit Saberwal, during his Growth Summit keynote presentation at RISE 2019, Asia’s largest technology conference held in Hong Kong on July 9 – 11th.
Driven by a growing middle class that will be 350 million strong by 2022, Southeast Asia has a large and evolving hospitality market filled with numerous growth opportunities. According to Roshan Raj Behera, business partner at consulting firm RedSeer, Southeast Asia has more than 120,000 budget hotels in the three-star or below segment as of 2018 – providing RedDoorz the right environment to grow even more. According to Phocuswright, Southeast Asia’s hotel market is three times as big as India’s travel market, and is valued at US$17 billion and by 2023 this is expected to reach US$23 billion. Budget travel is undergoing a huge transformation across Southeast Asia as middle-class millennials adopt travelling as a lifestyle with a focus on cost efficiency.
Speaking on the sidelines of RISE, Amit Saberwal, Founder & CEO, RedDoorz added, “As Southeast Asia’s fastest growing company in the affordable travel space, we are deeply committed to building a sound, sustainable business with strong fundamentals in place. Our region presents exciting opportunities but it remains a challenging environment to operate as it has different consumer behaviours and preferences from city to city, not just countries. Technology and data are key levers helping us solve such challenges and we are pleased to announce we’ve been doubling our scale every six months for the last two years in a row.”
RedDoorz’s latest achievement can be attributed partly to the hyper-local strategy it implemented in all markets, where it has built an in-depth understanding of the local dynamics at play. Another key aspect helping the company scale so fast was its focus on customer experience as a clear differentiation factor among other category players.
“It is estimated that occupancy rates in mid-range hotels in Southeast Asia typically stand at around 40 to 45 per cent, but after joining RedDoorz we see them climb to 80 per cent on average. We are adding 200 new properties to our network every month and we plan to increase this even further for the remaining months of the year. As we expand across the region, we continue to build our business as the go-to-choice for quality and reliable accommodations,” added Saberwal.
Since its inception in 2015, RedDoorz has grown exponentially across Southeast Asia to operate over 1,200 properties in Singapore, Indonesia, Vietnam and the Philippines. With the vision to provide quality, standardised accommodations at every relevant street corner in major cities and tourist destinations, the platform has built a strong and loyal 3 Million+ customer base. Its largest market continues to be Indonesia where it has more than 800 properties in its network.
According to e-Conomy SEA 2018 study by Google-Temasek, online travel is the largest and most established of the four verticals of the internet economy in Southeast Asia, reaching US$30 billion in gross bookings value (GBV) in 2018 and heading towards US$78 billion GBV by 2025. The vertical is expected to grow 15 per cent year over year, and online sources are dominating travel planning and booking. With Southeast Asians prioritising their discretionary spend on travel and tourism, the region presents largely untapped potential that RedDoorz intends to further capitalise on.