The owners of some private hotels in Hanoi and HCMC say their monthly revenue in the past was VND60-80 million. Later, RedDoorz and OYO, the two online booking platforms, asked for cooperation, promising to pay 150 percent of the revenue.
With the cooperation, the owners of hotels now don’t have to worry about how to lure guests, but only have to focus on managing and running their hotels.
RedDoorz and OYO are in charge of selling rooms on websites or mobile software, support training, and upgrade hotels in accordance to their standards.
In the past, hotels set room rates of VND600,000-800,000 per night. But now the room rates are set by RedDoorz and OYO. In low-sales season, the room rate can even drop to VND200,000.
In other words, the hotels now don’t have to take care of sales after they sign contracts on wholesaling rooms to RedDoorz and OYO. They have to run the hotels in accordance with certain standards. However, there are changes in the hotel name tags. There are the names of hotels, as well as the names of RedDoorz or OYO. At some hotels, there are the names of only the booking platforms.
|With the cooperation, the owners of hotels now don’t have to worry about how to lure guests, but only have to focus on managing and running their hotels.|
Redoorz, the Singapore-based hotel room management and booking technology platform, after four years of presence in Singapore, Indonesia and the Philippines, is accelerating business in the Vietnamese market. It connects guests and owners of low- and medium-end hotels.
A representative of RedDoorz said it has connected 1,200 hotels in the four countries and the number of clients has increased rapidly.
Vietnam is an attractive market for RedDoorz with 85 million domestic travelers using 23 percent of budget for accommodation service, and 18 million foreign travelers, using 33 percent of budget for accommodation service.
The Vietnamese hotel market is expected to increase by 13.2 percent this year, reaching revenue of $566 million.
Meanwhile, OYO, a similar business model from India, said it has connected 90 hotels in six cities, while committing to invest over $50 million more to accelerate business.
Anil Goel from OYO hopes Vietnam will have 103 million travelers this year, both domestic and foreign, an opportunity for OYO to build a hotel ecosystem.
Vietnam also has an online booking platform following a similar business model – Mandala Inn. Apec Capital, a startup investment fund, announced it has invested nearly $1 million in Mandala Inn. The booking platform hopes it can connect 600 hotels throughout the country within one year.
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