High quality, no frills hotels appealing for corporate travel

The concept of a cheap ‘no frills’ service has worked a treat when it comes to air travel for leisure and business travellers, but what about hotels?

A Malaysian hotel chain is about to test the Australian market with its innovative accommodation that provides high quality basics at a low price with the option to add extras such as TV, internet and so on. It’s been a huge success in Asia, with a one night stay in Kuala Lumpur costing as little as $15AU.

The Tune Hotels group has just bought an office building in Swanston Street, Carlton in Melbourne, which will be converted into its first low cost Australian hotel, containing 235 rooms plus serviced apartments. BCD Travel’s Melbourne business travel office says the hotel may be open as soon as next Christmas.

The primary offering centres around five things: 5-star beds; high pressure ‘power showers’; clean room; 24-hour security; and highly convenient locations close to shops and facilities. Extras include air conditioning, toiletries, towels, internet and TV entertainment.

Tune is also looking at sites in Sydney, Perth and the Gold Coast and also has its eyes on Darwin and Brisbane.

BCD Travel’s Melbourne business travel office said the hotel chain would likely be successful in Australia given the ongoing desire among corporate travel management clients to reduce costs.