FAB TALKS
‘Positive disruption’
In a FAB session that covered channels adjacent to food & beverage, Kepler Club CEO Ömer Alaettinoğlu and CapsuleTransit CEO Ryan Loo focused on an increasingly popular alternative to traditional airport lounges, namely capsule hotels.
Popular in Japan since 1979, capsule hotels are attractive to younger audiences and families who need either an affordable place to stay or a quiet, well-designed spot to work or relax in between flights. At Kepler Club, guests pay US$13 per hour and at Capsule Transit prices start at around US$17.50.
In a panel discussion with The Moodie Davitt Report Founder and Chairman Martin Moodie, both business leaders showed how they are using the latest technology to not only generate income in-house but also to amplify spending for other businesses around the airport via shared ecommerce platforms.
Using an in-room tablet or an app, guests at both capsule hotel concepts can, for instance, order a curated selection of essential items to their rooms such as water, a forgotten toothbrush or ear plugs.
For guests at Alaettinoğlu’s Kepler concept at Istanbul’s Sabiha Gökçen International Airport, these items are delivered by a ‘friendly robot’ called Yohan.
Kepler has adopted a warm, friendly and distinctly humorous brand tone of voice as witnessed by this response to a question on the company’s website
Guests at both businesses are encouraged to shop online using a platform that shows them everything that is available in duty free.
“That’s very important because not only have we got one or two people in the same square footage, but we also make it easy for them to spend in two separate locations, which benefits everyone,” said Alaettinoğlu.
But for these services to become more popular, Alaettinoğlu noted the importance of consistently high customer service. “I always tell my staff that the single most important thing should be customer satisfaction,” he said. “Customers should be happy during their stay and should want to come back again after their stay.”
The Turkish businessman has taken a deliberately bold and youthful approach to his capsule hotel business, using a humorous tone of voice in the brand’s copywriting and social media posts to attract Gen Z. As well as capsule rooms with Netflix and foldaway mini desks, both Kepler Club and Capsule Transit offer stylish communal work and refreshment areas with free super-fast wifi and all-day complimentary soft beverages.
At Kepler Club at Istanbul Sabiha Gokcen Airport, guests can stay overnight or just hang out for an hour in a mini lounge, using the free wifi
Loo's business model was inspired by the original capsule hotels that were invented in Japan in 1979. He started looking into modernising the concept in Malaysia in 2014, before fully launching by 2019. But as the pandemic brought the world to a halt, his newly established business had to close.
But that did not deter Loo, who spent lockdown using his mechatronics degree (mechanical and electrical engineering) to develop the business so that it incorporated simple shopping technology for all customers. He now offers 298 beds across Kuala Lumpur International Airport Terminals 1 and 2, with further expansion plans in motion.
The world's first capsule hotel in Japan launched in 1979 and looked like something out of a Stanley Kubrick movie
Ryan Loo's modern-day capsules are much more comfortable and high tech with an industrial-style interior design
With the return of international travel on the rise, Loo predicted an increasing interest in airport accommodation that is fun and affordable. “As travel started to recover at certain airports, we saw how travellers are looking for seamless connectivity,” he said. “Capsule hotels play a very important role in fulfilling this need.”
He also seeks to change people’s perception of capsule hotels. “We want to elevate the perception and make it more inviting, premium and acceptable to the general public,” he said.
CapsuleTransit offers a wide range of services and amenities including coffee, toiletries, lockers and more. Customers can check in anytime and pay on an hourly basis or stay overnight.
And with airport space at a premium, the capsule hotel model is a no-brainer for start-ups wanting to get into accommodation, as Alaettinoğlu was keen to point out.
“We can stack two units on top of each other and that saves a lot of space in comparison to a regular airport hotel, where they need to take a long time cleaning the whole surface area of the room, turning it over and making it ready again,” he said. “They cannot sell their rooms for one or two hours like us. We use automated kiosks, which helped our architects to save a lot of space on reception areas. And we don’t have to be in prime retail space because it’s actually better for guests to be in a slightly quieter area.”
Neither hotel concept offers food, partly to discourage the consumption of food in the bedrooms. Instead, guests are encouraged to go out into the airport and explore the many dining options on offer before returning to their cosy capsules.
Kepler Club CEO Ömer Alaettinoğlu
CapsuleTransit CEO Ryan Loo
FAB eZine
January 2024
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