Traveloka-affiliated hotel aggregator Airy Rooms confirms it’s checking out of business

Tea service in a hotel room. Photo: Pixabay

Indonesia’s Airy Rooms, a Traveloka-affiliated budget hotel startup, has announced that it will cease its operations permanently after mounting pressure in the wake of COVID-19 made the business unsustainable.

“Airy’s management has considered many factors, including market conditions that almost collapsed due to the COVID-19 pandemic, as well as the severe economic challenge. We are sorry for any inconvenience caused,” Airy CEO Louis Alfonso Kodoatie said in a statement.

DealStreetAsia broke the news of Airy’s shutdown last week.

The startup said the COVID-19 pandemic has disrupted the tourism industry, profoundly affecting Airy’s business as one of the players in this sector. It caused a significant decrease in sales as well as a spike in refund requests from users, ultimately resulting in substantial business losses.

“The company has looked at various angles to ensure the business works during this pandemic. However, the volatile nature of the COVID-19 pandemic forces the management team to take decisive steps and make incredibly hard decisions,” said Kodoatie.

Airy says its utmost priority at this moment is to ensure a smooth refund process to all its impacted customers and the termination process with its partners.

Airy’s affiliation with Traveloka dates back to 2015, the year the budget hotel startup was founded.

According to numerous industry sources, Airy Rooms was incubated at Traveloka, before it was spun off to run its own course. However, in an interview with us last year, the company described itself as a “strategic affiliate partner” of Traveloka, with an “independence to build its own organization, direction and products.”

Airy becomes the second Indonesian startup to shutter its operations after STOQO, a marketplace for F&B businesses, gave up the struggle to keep its lights on.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.