Red Planet's Tune Hotels ditch add-on model

Red Planet Hotels has moved its Tune Hotels away from an add-on to an opt-out model, where guests can pick which amenities they do not want rather than choosing ones they do.

This is effective at all 14 Tune Hotels that Red Planet owns, develops and manages in Indonesia, Thailand, the Philippines and Japan. It is also in talks with Tune Group for online sales to mirror the new approach.

By doing so, Red Planet expects to enlarge its client base, capturing agency and corporate business as it expands in Asia.

Tune Hotels Indonesia’s corporate director of sales and marketing, Bina Sembiring, explained the rationale of the reworked approach: “During sales calls in Indonesia, we get clients asking if they needed to bring their own towels and pillows to Tune Hotel.

“Some also commented that after adding on (desired amenities) to the basic price, the rate was not economical anymore…We want to change that (mentality).”

She said that travellers could now choose from two “packaged” room rates, one with breakfast and one without, and guests who want the bare minimum could book online. Rates are higher than the room-only price, but still lower than if add-ons were made, such as air-conditioning, TV, use of the in-room safe, Wi-Fi and bathroom amenities.

Asked if the change was proof that the add-on model did not work, Mark Armsden, senior vice president sales and marketing, Red Planets Hotels, said: “I would not say so, as it did work in the beginning, but we got feedback that people do not want to spend extra time adding on and on, and just want the total package price.”

He added that Tune’s shift in model is “similar to how AirAsia (Tune is part of the AirAsia family) has evolved”. “When the airline was first launched, it was free seating and there were add-on (payments) to book a seat, meals, etc. Now, when you check in a seat is assigned to you.”

There are four Tune Hotels in Indonesia currently, a number set to double next year and projected to hit 40 in five years. Red Planet aims to grow its portfolio of Tune Hotels to 100 properties in the region within five years.

-TTG Asia.