RedDoorz Announces Strategy Change, Enters Property Business Through "Sans Hotel"

Hotel booking platform onlineRedDoorz announced plans to change its business strategy to become a company new-age hospitality largest in Southeast Asia. One of the company's main strategies is to build a new hotel brand "Sans Hotel" which will be present for the first time this November.

Sans Hotel targets travelers from generation Z and millennials by prioritizing the concept of affordable accommodation youthful,design-inspired, and warmth by combining smart technology and affordable prices.

Moreover, BPS data records that the productive age population (15-64 years) is estimated to reach 179,1 million people in 2020, 63,5 million coming from millennials. This makes millennials a driver of economic growth, including the tourism sector.

Contacted DailySocial Separately, RedDoorz VP Operations Adil Mubarak said that plans to become a platform multibrand been considered for a long time, even before the onset of Covid-19. This is the company's new vision to become a product ecosystem that supports the needs of every brand.

"Currently, our finances are in a good position, especially in executing our strategy change and launching Sans Hotel. From day one, we focused on building a business with strong financial fundamentals as it allows us to think concretely about the next phase of growth," he explained.

Fair realizes that the industry tourism and hospitality hit hard Due to the pandemic, RedDoorz's business is no exception, which has been affected since March 2020. Nevertheless, he made sure that his party still carefully considered everything including the costs that would be incurred even though they entered a new business line during this pandemic.

"In this third quarter, we experienced positive business growth. This is what ensures we can get out of this pandemic storm and emerge with the right steps. We are looking forward to the recovery phase," added Adil.

RedDoorz noted, during March-October 2020 room booking services on its platform increased by 80 percent, while occupancy services increased by 50 percent. Citing the STR Hotel Database report, RedDoorz said the achievement in that period was above the average of the total national occupancy of only 36 percent.

According to Adil, RedDoorz is currently preparing several properties that will become Sans Hotel. For the initial stage, RedDoorz targets the construction of five Sans Hotels in the Jabodetabek area by the end of 2020.

"We want tocater all travel needs of all walks of life. It's not that our hotel partners are not enough, but the presence of Sans Hotel will provide a different feel for the millennial and gen Z market," he said.

He is optimistic that the tourism industry and hospitality get well soon even though it's still in a pandemic situation. The reason is that McKinsey's latest report on the tourism industry states that there is a trend of latent demand for traveling along with the holiday ban removed. Even people are predicted to do it before the Covid-19 vaccine is available.

In addition, citing research from Blackbox and Dynata, Adil revealed that as many as 44 percent of respondents currently prefer to travel domestically rather than internationally due to health and safety factors. This means that domestic tourism is expected to be increasingly in demand.

The launch of Sans Hotel is expected to strengthen RedDoorz's strategy as a platform multi-brand hospitality. Especially after the company launched service co-living KoolKost in early 2020, this platform is targeted to become one-stop platform to meet accommodation needs.