Nida Rooms seeks 3,000 Thai hotels

Global Rooms Ltd, the Malaysian operator of the Nida Rooms hotel system, expects to have 3,000 mostly budget Thai hotels join its network by the end of 2016.

A Bangkok office will open in April, when reservations for Thai hotel rooms will start as well, said Atakawee Choosang, Global Rooms' country head for Thailand.

The Nida Rooms hotel system offers budget hotel operators an opportunity to increase occupancy rates, while customers benefit by obtaining standardised accommodation at a budget price in good locations.

Nida Rooms does not own or operate hotels itself, but instead contacts budget hotel owners to help them sell at least five unsold rooms per hotel via nidarooms.com bookings.

It will get deep discounts from the owners of three-star hotels and under, so it can play with the price to draw travellers.

"This concept is very new to the Thai hotel industry," Mr Atakawee said. "We see a big chance as budget hotels here are mostly operated by small owners who do not have marketing networks. Our hotel system can help them sell their rooms."

Nida Rooms utilises a distinctive model similar to that of low-cost airlines where a product or service is provided to customers through a fully dynamic pricing model, making it affordable to a wider range of customers.

The concept came from Global Rooms' co-founders Dennis Melka and Kaneswaran Avili, both with extensive experience in hospitality and travel.

Mr Atakawee describes Nida Rooms as the largest "virtual" hotel chain in Southeast Asia, even though it was established just seven months ago. Over 3,000 hotels in Malaysia, Indonesia and Thailand have joined its network, offering more than 5.4 million room nights annually.

In Thailand, 1,400 hotels have already partnered with Nida Rooms.

"We want to build our brand first and then attract up to 10,000 hotels to our network over the next three years," Mr Atakawee said.

He explained that budget hotels joining the system do not pay any money, with Nida Rooms being responsible for adding amenities and putting its sign in standard rooms.

"Our room prices will be lower than the rates offered by hotel owners, but customers might not get full service such as breakfast," he said. "If customers cancel reservations, they might not get a 100% refund."

Target customers are backpackers, local salespeople, civil servants and small-business owners.