KUALA LUMPUR, Malaysia (eTN) - Southeast Asian countries will get a new entrant in the hospitality industry when Tune Hotels make its debut with the opening of its first 173-room no-frills flagship hotel here in the Malaysian capital of Kuala Lumpur on March 1.
Situated in Kuala Lumpur's business area, the hotel brand is pricing its rooms following the path its founders have taken with the no-frills airline approach. Price will range from US$3- $20.
Founded by Tony Fernandes, who also founded three of the region's newest start-up no-frills carriers, it promises to charge only for what is used. "We are not cannibalizing the market, we are aiding its growth."
"People are not traveling due to expensive hotel room rates. Consumers in ASEAN [Association of Southeast Asian Nations] are now web-savvy and look for good deals by buying direct," he added.
"There is a gap in the ASEAN tourism product offering," said Dennis Melka, co-founder and director of Tune Hotels. "There has been an explosion in value-based tourism in Malaysia and the ASEAN region."
Tune Hotels is basing its marketing strategy on the low-cost carrier's pricing model of "a room unsold is cash lost."
"We want to be the first to offer the market a low-cost, dynamic booking system, a standardized product which will dominate the ASEAN "economy" hotel market.
Added Melka, tourists prefer to spend their money on shopping, food and attractions instead of paying for rooms that are used for just as a resting place."
Tune Hotels has done away with cupboards, expensive floorings and carpets as well as other complementary items usually found in normal hotels, said Melka. "Customers can buy towels or other basic amenities which are theirs to keep. Guests want a clean room, strong shower, nice bed and a secure hotel."
Tune Hotels is looking at a market of 40 million travelers in the ASEAN region, served in the future by about 200 low cost carriers in Asia.
This year, Tune Hotels will open hotels in Malaysia's major cities Kota Kinabalu, Penang, Kuching and Johor Baru which have connecting AirAsia flights to add to its network.
It will also open its Bali hotel by early next year.
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