Global Rooms exploring partnership with SpiceJet

Malaysia-based Global Rooms is exploring a partnership with domestic low-cost carrier SpiceJet to sell its niche segment NIDA Rooms.
The move comes at a time when a large number of tourists from South-east Asian countries are flocking to India.
Global Rooms is the parent company which manages NIDA Rooms.
The company, which commenced operations last September, is also in the final stages of raising USD 3-3.5 million funds as it seeks to expand its presence in other markets such as Vietnam and China besides India, Kaneswaran Avili, one of the company's co-founder and former SpiceJet chief commercial officer said.
Avili was one of the several senior SpiceJet executives who parted ways with the Gurgaon-based airline after current promoter Ajay Singh took control of the carrier from Maran's family early last year.

"Flight plus hotel products have a big demand and therefore partnering with an airline makes a lot of sense. Spicejet is a strong brand in the category we are participating. We are actively looking at forging a partnership with the airline to promote our niche product," he said.

Avili, who was also part of the startup team of no-frills AirAsia and later Tony Fernandes' Tune Hotels, had founded the company with former Credit Suisse executive Dennis Melka in August last year.
Global Rooms business model helps both the customers as well as hotels, Avili said, adding, "while customers are able to find the right hotels at the right price and location, the hotels sell unsold rooms."

According to him, the occupancy rate across hotels in South-east Asian region stands around 60 per cent while the remaining 40 per cent go vacant and his company ties up for some of these rooms and sell to customers under the brand name Nida Rooms.
The company has already tied up with over 3,000 hotels, five rooms in each hotel, across Indonesia, Malaysia, Thailand and Philippines, he said adding the target is to have 5,000 hotels by May and subsequently 10,000 by December this year.
"The demand for this segment is pretty good. Having established our presence in the four major markets in South-east Asia, we are now looking at expanding in Vietnam China and India," he said.

Latin America is next on the radar as that region has a lot of demand for hotels which are not under any particular chain or group, he said.
"We are also very keen on working with the aggregators (travel portals) and are in talks with some of them to market our product in India," he said.
Avili said his company has already mopped up seed capital to the tune of USD 1.3 million and now is in the final stages of raising another USD 3-3.5 million to fuel its expansion plans.