How a Hong Kong Budget Hotel Survived 2019 Summer

06 NOVEMBER 2019

Hong Kong- considerably one of the cities that see many tourists and visitors from all walks of life. This city had ranked 1st in the most visited city in market research company Euromonitor International’s 2018 report, with over 29,000,000 visitors. 

However, this summer Hong Kong’s tourism market has decreased greatly due to the current situation in the city, visitors from July to September decreased 25% compared with 2018. This has caused a steep decline for occupancy rates for accommodations in Hong Kong, dropping in half and room rates plunging to about 40-50% (SCMP, 2019).

The situation is even worse for the 1,400 guesthouses in Hong Kong, since their main market is mainlanders; wherein Mainland tourism dropping to 90%. These establishments only available WeChat or walk-ins booking. Lack of customer service being available outside of this market is also a heavy deterrent. 

These guesthouses are not able to maximize potential profits since they are dependent on this particular market. Management and owner’s in this segment are not equipped to reach other potential foreign customers. This may potentially lead to closing down their business considering the uncertainty of the city. 

 

With Koalabeds, guesthouses and motels survive despite situations that may negatively affect the industry by being able to properly reach a wider audience by introducing the Koalabeds App. Making them available and more visible to international markets. 

Koalabeds is a new digital hotel group that helps budget accommodation establishments thrive. With over 500 rooms in Hong Kong and is currently expanding to other Asian regions, the group has a 5% market share in the guesthouse industry.

In addition to this, Koalabeds re-brands the establishments it manages by making it more appealing to international customers. Makes sure to enhance and properly photograph the establishments to appeal to consumers, who can view the available accommodations through the app or website.

The Customer Service team comprises of diverse individuals who speak a wide array of languages such as English, Chinese, Thai, and Tagalog. To connect better with international customers. The company also implements the standardization of quality budget rooms that offer potential and current customers quality accommodation at an affordable price.

Connecting guest house to Koalabeds app enables users to experience a digital check-in that is efficient. Helps cut down cost and manpower on the side of the establishment/s. Enables to use the resources offered by Koalabeds such as repair and cleaning team who are well-equipped with hotel management experience. Effectively decreases cost instead of the establishment having their own full-time team. 

Overall, with the services provided by Koalabeds, the company has managed to keep over 70% occupancy rate. Extra services income increase by 500% with the attractions and transferred offered.

Koalabeds welcomes new partners to their growing family to help spread their vision of creating a smarter and more affordable way to travel in other countries, as well as upgrade the services offered. We also started to expand in other South East Asian countries with the same business model in mind.

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