Southeast Asia-based booking platform RedDoorz has announced that 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 $17 billion and by 2023 this is expected to reach $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.
Saberwal said, “Our region presents exciting opportunities but it remains a challenging environment to operate as it has different consumer behaviors 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.”
“It is estimated that occupancy rates in mid-range hotels in Southeast Asia typically stand at around 40 to 45 percent, but after joining RedDoorz we see them climb to 80% percent 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,” 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.
The platform has built a strong 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 $30 billion in gross bookings value (GBV) in 2018 and heading towards $78 billion GBV by 2025.
The vertical is expected to grow 15 percent year over year, and online sources are dominating travel planning and booking.