The Wrap: East Java is the focus of RedDoorz’s expansion in Indonesia
30/01/2019 by WiT

In the news: RedDoorz’s growing portfolio in Indonesia, SIA’s new innovation lab, revival in Lombok tourism, Ctrip’s Phuket in-destination service centre

Hotels: East Java is the focus of RedDoorz’s expansion in Indonesia

Surabaya will see more RedDoorz properties.
(Image credit: DanielFerryanto/Getty Images)

RedDoorz, Indonesia’s leading budget hotel online platform, has set its sights on 10 cities in East Java to grow its portfolio.

The brand began its operations in the province in November 2016, starting with its capital Surabaya and the second-largest city in Indonesia.

According to RedDoorz, Surabaya is currently its fourth best-performing city after Bandung, Jakarta and Yogyakarta with 30 fully managed properties. Room count has since increased four fold, and room nights multiply by more than six times on a year-on-year growth.

Late last year the company entered Banyuwangi and Probolinggo, joined by Pasuruan and Jember this quarter.

East Java has good potential for growth as more than 77% of Indonesians travel domestically within the province, disclosed Mohit Gandas, RedDoorz’s country manager for Indonesia, quoting data from the JEJAK report.

“By the end of 2019 our expansion goals will include achieving a total of 5,000 rooms in East Java. We want our properties to provide our guests with the best quality stay experience – this includes the accessibility through our online platform. With our consistent approach to our growth in Indonesia, we are excited for the next step of our plans for East Java to materialise.”

Adil Mubarak, vice president, operations for RedDoorz, added that when the company started out in Indonesia its aim was to approach one city at a time and grow the brand “with precision and importance”.

“To date, our footprint spans over 13,600 rooms across 30 cities in Indonesia. We will grow to 35 cities in Indonesia by April 2019. It is definitely reassuring for us at RedDoorz to continue doing what we do best – for not only the consumers but also for the property owners.”

Described as the fastest growing budget accommodation provider in South-east Asia RedDoorz, headquartered in Singapore, entered the Philippines in the middle of last year. Its portfolio now totalled 17,000 rooms in over 500 properties in four countries (Singapore, Indonesia, the Philippines and Vietnam).

The company has received investments from Jungle Ventures, Susquehanna International Group, International Finance Corporation (the World Bank), 500 Startups and Innoven Capital (with relations to Temasek and UOB). According to Crunchbase its total funding to date is US$19.4 million.

Technology: Singapore Airlines opens digital innovation lab

KrisLab – a collaborative workspace for SIA staff to develop innovative ideas
(Image credit: Singapore Airlines)

Singapore Airlines (SIA) on Tuesday (January 29) unveiled its new innovation lab, KrisLab, in a move to transform itself into “the world’s leading digital airline”

The lab serves as a collaborative workspace for the airline staff to develop innovative ideas and co-innovate with external partners, start-ups, established incubators and accelerators.

The airline said technology such as blockchain, mixed reality devices, artificial intelligence and data analytics are used and explored by staff as they develop their digital initiatives. Once an idea has been approved, seed funding along with expertise provided by the lab team is provided to help develop it into a prototype, before moving to the implementation stage.

Apart from helping employees develop their innovation ideas the lab team has been working with research institutions, such as the Agency for Science, Technology and Research (A*STAR) and the National University of Singapore (NUS), on research in deep-tech areas like revenue management, smart seats and virtual training).

“We are fully committed to further enhancing our digital capabilities by providing the right tools and infrastructure for staff to develop their ideas, as well as collaborating with external partners and start-ups to help solve business challenges,” Singapore Airlines CEO, Mr Goh Choon Phong.

Another innovation being explored at KrisLab involves the use of virtual reality technology to allow the airline’s designers to step on board and explore or change future cabin design concepts quickly.

The launch of KrisLab is in line with the airline’s Digital Innovation Blueprint, launched in 2018, under which SIA develops and nurtures the digital aviation and travel technology community in Singapore through collaborative partnerships with organisations.

Destination: AirAsia lends a helping hand in Lombok tourism revival

Tourists are returning to Lombok after last year’s earthquake.
(Image credit: Try Media/ Getty Images)

AirAsia plans to develop Lombok in Indonesia’s West Nusa Tenggara as its new hub with the island seeing a revival in tourism after the devastating earthquake last year that led to a decline in visitor arrivals .

On August 5, a powerful and destructive 6.9-magnitude earthquake struck Lombok killing more than 90  people and wounding hundreds. This was followed by another 6.3-magnitude earthquake just two weeks later.

The low cost carrier’s announcement follows a series of post-earthquake recovery discussions, which will help the Indonesian government’s sustainable tourism agenda to develop Lombok as one of the ‘10 New Balis’.

Tony Fernandes, AirAsia group CEO, explained the airline would help accelerate post-earthquake recovery efforts to support the people in West Nusa Tenggara, especially in Lombok.

“The past year has been a very sad and challenging time for the people of Lombok, including the local tourism industry, which has suffered as a result of the recent earthquakes. To be able to say that help is on its way is a great thing.”

In the next few months AirAsia would work with airports and local authorities to develop Lombok into its newest hub in Indonesia, added Fernandes.

AirAsia Indonesia will base two Airbus A320 aircraft in Lombok, with plans to double existing flight frequency from Kuala Lumpur in Malaysia to the island as well as services to Perth, Yogyakarta and Bali. Its CEO Dendy Kurniawan said Lombok, as a “premier holiday destination in the region”, has a lot of potential and AirAsia was ready to tell the world that “it is open for business”.

“We know that when we combine our resources and work with the tourism industry on marketing and public relations initiatives, we’re able to expand the market and drive greater demand for destination Lombok.”

AirAsia commenced international services from Kuala Lumpur to Lombok in October 2012, and currently operates seven return flights per week between Lombok and Malaysia’s capital.

Travel: Ctrip chooses Phuket to site its first in-destination service centre

Relaxing in Ctrip’s Phuket service centre
(Image credit: Ctrip)

Chinese travellers love to holiday on islands as, for most, the conception of leisure is escaping to one due to China’s rapid urbanisation. So it is no surprise that China’s largest OTA Ctrip chose an island – Phuket in Thailand – to launch its first in-destination service centre.

Ctrip’s recent Chinese New Year travel report also revealed Thailand as the top outbound destination for Chinese tourists, with Phuket as one of the most popular island they vacation in.

Another reason for choosing Phuket is the timing of the flights to the island, said the OTA in a statement on the centre’s launch.

“Most services between Chinese cities and Phuket are red eye flights. For instance, 11 out of 12 direct flights from Phuket to Shanghai on January 26 are uncomfortable red eye ones as a search on our international brand Trip.com revealed.”

Ctrip added that the service centre is a place for customers to refresh after their flights, as well as help reduce the cost of their accommodation.

The Phuket service centre is located at Padong Beach, and is open 24 hours daily. It has lockers, lounge chairs, WiFi, shower, pick-up and send-off services, as well as Chinese speaking assistants to provide information on local attractions, transportations and more.

Featured image credit: RedDoorz

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