RedDoorz, a tech-enabled budget accommodations platform based in Singapore is ready to address the growing demand for quality-yet-affordable accommodations in Cebu, as tourism in the Queen City of the South is expected to continue booming this year.
Over the last few quarters, Cebu has seen a huge uptick in tourist arrivals, after it opened a new and modern global airport in Mactan Island.
The local tourism office of Cebu estimated that around 7.5 million foreign visitors flew to Cebu in 2018, and this is expected to increase by double digits this year, as more and more flights are being mounted to Cebu.
As a result of this, demand for more accommodations in Cebu soared, with average occupancy rates reaching as high as 80 percent in the second half o 2018.
But while Cebu is blessed with a huge selection of luxury and mid-range hotels, travelers today particularly millennials, demand for quality affordable stays with the supply still barely keeping up.
According to research conducted by Yahoo Travel, millennial travelers are more keen on spending their hard-earned cash on experiences over luxury; and post, five-star accommodations do not necessarily align with this inclination.
With this, RedDoorz saw a huge potential in the Cebuano market, quickly expanding to Metro Cebu shortly after it began operations in the Philippines.
“We at RedDoorz are ready to meet the huge demand for budget-but-quality accommodations here in Cebu. We have been successful in helping different Asean cities in helping spur tourism and trade, and we aim to replicate that success in Cebu.,” RedDoorz Chief Operating Officer Rishabh Singhi said.
The company had done aggressive marketing in Cebu, increasing visibility with signages and advertisements, working with local influencers for RedDoorz Race, setting up activations during the Sinulog Festival, as well as partnering with Cebuano influencers and local companies such as The Distillery and Cebu Pacific’s GetGo rewards program.
Transforming the landscape of the budget hospitality industry
RedDoorz is a chain of hotels providing affordable but standardized stays for its customers. In a nutshell, it transforms small unbranded hotels and provides them with the technology and technical know-how in the hospitality industry.
It started in 2015 in Indonesia, and in only a year, started tracking an exponential growth since then. RedDoorz then forayed into Singapore in 2017 and entered Vietnam and Philippines in late 2018.
Today, RedDoorz manages over 680 properties across 40 cities in four countries in Southeast Asia.
“With a vision to create more quality lodging options while also helping small property owners enjoy the benefits of tech-enabled and standardized systems, we’ve been able to disrupt and even the playing field for all tourism stakeholders,” RedDoorz Chief Executive Officer Amit Saberwal shared.
At home, it has a portfolio of more than 100 properties across five cities, namely: Cebu, Manila, Davao, Pampanga, and Tagaytay.
Each stay is guaranteed to be as great as a customer’s first RedDoorz experience – if not better – as the company has adopted a philosophy of standardized service with each room equipped with Wi-Fi, drinking water, television, clean bathroom, clean linen, basic amenities, and a 24/7 front desk.
RedDoorz Philippines maintains a consistent management philosophy and branding among its hotels, ensuring the best quality rooms and facilities at competitive price points through its range of basic, Plus and Premium properties.
Through the RedDoorz app and website, customers gain access to flexible payment options including credit cards, DragonPay (via bank transfer and 7-Eleven outlets) and pay at the hotel without credit card guarantee.
RedDoorz also incentivizes repeat guests with the RedCash rewards system and exclusive discounts and partner deals through RedClub membership.
“We are happy to provide our customers with impeccable accommodations at very competitive price points.,” Saberwal said. “So far, we have served over 150,000 users in the Philippines.”
Tourism marketing opportunity
While RedDoorz’s goal is to help travelers discover branded budget stays with a promise of high-quality services, it also aims to help local tourism offices improve their tourism numbers.
For instance, Singhi said local tourism offices could capitalize on the huge digital platform of RedDoorz to promote their tourism destinations.
“Cebu has a wealth of natural resources – pristine beaches, beautiful diving spots, and cascading waterfalls – and rich cultural heritage. WE can help improve tourism by using our platform to promote these destinations, ” Singhi said.
Aside from being a strong government partner and a platform for budget travelers, RedDoorz also presents a huge opportunity for small unbranded hotel and private property owners.
RedDoorz is actively partnering with property owners to help them transform their unnamed, unbranded, small, mom and pop hotels to be standardized RedDoorz rooms.
It then places these rooms in different global marketing channels, including RedDoorz online and offline platforms, while managing demand and optimizing pricing to maximize revenue potential and growth.
Demand for RedDoorz properties is high. In Metro Manila, 94 percent of RedDoorz-managed properties hit 70 percent occupancy rate level in less than six months.
Some property owners in Metro Manila likewise noted a tripling of their revenues, after getting a strong brand value and more streamlined operations.
“We understand that there it is challenging for smaller hotels and property owners in terms of marketing and brand management, our tech-enabled platform and our expertise in the hospitality industry helps us in helping them solve these problems.,” Singhi said.
Once affiliated with RedDoorz, property owners will be automatically enrolled in the company’s Partner Loyalty Program, which aims to increase staff’s morale and sense of belonging to boost their performance and sharpen their communications kills.
“Our vision is to disrupt and transform the hospitality industry not only in Cebu, but in the whole Philippines to bring quality yet affordable stays closer to travelers, and at the same time, help businesses and local governments unlock their potential,” Singhi added.