The Ryokan Collection widens portfolio, logs strong growth from SE Asia

the-ryokan-collection-widens-portfolio-logs-strong-growth-from-se-asiaLounge area of Kifu no Sato ryokan. Credit: Kifu no Sato

TOKYO-BASED The Ryokan Collection group of Japanese inns has added several establishments to its portfolio this year, as it attempts to add value and broaden options amid growing demand from overseas guests.

The group made the announcement in Singapore while on the first stop of its roadshow through South-east Asia, a region accounting for increasing guest stays at its luxury inns based in off-beaten locations around Japan.

Heading the entourage was Hiroki Fukunaga, founder and CEO of The Ryokan Collection, who spoke exclusively to TTG Asia e-Daily about the group’s strategies and new initiatives.

“This year, we have decided to come to Singapore and Bangkok as we have seen a significant increase in guests from South-east Asia, especially from Singapore and Thailand,” he said.

According to Fukunaga, Singapore has chalked up a 55.2 per cent increase in the number of guests staying at its properties during the January-July period in 2015 compared to the same period last year. In 2014, a total of 918 guests from Singapore had stayed at one of its properties.

Still, “85 per cent of ryokan business comes from domestic customers, with an increasing but limited number of international travellers,” added Fukunaga.

the-ryokan-collection-widens-portfolio-logs-strong-growth-from-se-asia2Private bath area in Kifu no Sato ryokan. Credit: Kifu no Sato

With the inclusion of six new members this year, the collection now has a total of 32 independently-owned ryokan-styled hotels under its portfolio, with an average inventory size of 25 rooms.

“Our inventory is very small, so we have to reach very selected customers, somebody who is looking for something exclusive, experiential,” he explained.

Besides widening its portfolio, new initiatives such as a loyalty scheme will be launched by this year-end to entice more customers as well as encourage return visits.

Under the loyalty programme, guests can earn a one-night complimentary stay upon completion of 10 separate stays at three or more of The Ryokan Collection’s properties within a period of two years.

“In our own research, about 10 per cent of our customers already achieve this (benchmark),” Fukunaga said, adding that they are seeing a similar amount of repeat guest visits.

“Our main attraction are the meals and the best ryokans are the ones that serve the best food. Those keen on authentic Japanese cuisine will come back again,” he said, describing the profile of repeat visitors.

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