No longer in the red

• Tourism is making a strong comeback post-pandemic, and so is 500-backed RedDoorz! The team revealed that they broke even in their key markets — Indonesia and the Philippines — in Q4 of 2022 with both markets contributing 95% of the company’s total revenue.
• What’s more, RedDoorz expects to breakeven in their other two markets by the end of 2023 — Thailand and Vietnam.
• Founder & CEO Amit Saberwal attributed the growth to the doubling of the company’s property footprint last year. RedDoorz increased their property count in Indonesia and the Philippines by nearly 12% and 43%, respectively.
• “The ability to breakeven at a country level is a great proof point on how our business model can work in a sustainable and scalable way in our largest markets,” Amit shared.
• He added that revenue from offering microproducts such as early check-in or late check-out, paid loyalty program, insurance, flexible cancellation policies, and breakfast, among other services, contributed to 30% of overall business.
• This achievement comes despite a post-pandemic staff shortage, which presented an opportunity for RedDoorz. To cope with increasing demand thanks to ‘revenge travel’, the company focused on adoption of better technology and automation.
• What’s next? RedDoorz is planning to add over 1,500 hotel properties across its four markets this year. “After the pandemic, owners are realizing the importance of being part of a branded hotel chain,” Amit said, adding that RedDoorz’s strong brand presence and use of technology make being part of its network an attractive proposition for many.
• The team is also setting their sights on new markets such as Malaysia, and expanding in Thailand, Vietnam, and Indonesia.
• RedDoorz currently has three brands for different categories of travellers: Sans, Urban View, and Sunnera. The company will soon launch Lavana, featuring luxury villas.
• Read the exclusive story on Tech in Asia.