Hotels which aren’t part of big chains tend to suffer within the hospitality niche, as they have trouble competing with bigger chains. However, these smaller, independently-owned hotels aren’t right for HomeAway and Airbnb, either. A Singapore-based hospitality solutions company named Zuzu wants to help smaller hotels within Asia, by offering vital management of revenue and services for marketing. These new Zuzu initiatives will assist smaller hotels by giving them the capacity to keep their brands strong.
Zuzu is a startup and it announced in late October of 2017 that it’s raised two million dollars’ worth of seed money, via a company called Wavemaker Partners. It’s also accessed funding from a group of venture capital companies in Asia, including Convergence Ventures, Golden Gate Ventures and Alpha JWC.
Zuzu is using funds from angel investors, along with the new seed money, in order to gather three million dollars. This round of funding features many new investors, including the CEO of the Arby’s fast food chain, Paul Brown, and the former president (for commercial services and brands) of the Hilton hotel chain. As well, Zuzu has attracted investment from Goodman Capital, which has invested in the startup in the past.
Zuzu Has Big Plans
Zuzu was founded by Vikram Malhi and Dan Lynn. They left their positions at high-profile travel companies in order to branch out on their own. Malhi was once the managing director of Expedia within Asia and Lynn served as VP of APAC/emerging markets. Recently, Expedia invested three hundred and fifty million bucks in a travel portal for Asia (Traveloka), which has a valuation of close to one billion dollars. Clearly, the travel niche is booming.
Websites such as Traveloka tend to target bigger hotel chains. This means that smaller, “indie” hotels are left out. Zuzu is here to change all of that. Zuzu plans to help independent hotels which are smaller to access more market share in an niche that does have high demand.
According to Zuzu, the biggest travel agencies that operate online don’t offer solutions for indie hotels. Hoteliers need an array of channels online, rather than just one and this is why Zuzu created software and service solutions which are just for smaller, independent hotels. Other firms which aim their services at the small hotel niche include Zenrooms and OYO. These companies add small hotels to their networks and also offer marketing and management services. In exchange, each hotel utilizes Oyo and Zenrooms branding, which extends to room decor and signage. This uniform branding across the board is meant to reassure guests that they will receive a high standard of service in all of the participant hotels.
Will Zuzu Be a Big Hit?
With Zuzu, hotels don’t need to adopt Zuzu branding. Hotels may retain their existing brand identities. This “white label” solution is likely to be extremely appealing to a lot of independent hotel owners. Some independent hotels have a lot of character and uniqueness and services like Zenrooms and OYO tend to take that character and uniqueness away. Time will tell if Zuzu’s plan for smaller hotels pan out.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Chinese Tourists Are Choosing Singapore as Their Preferred Destination, Singapore’s Economy Is Expected to Grow This Year and all topics related to Business and economy, if you want to know more about Company and Business Registration in Singapore visit our website.
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