Loco Partners

Loco Partners operates as a specialized online travel agency in Japan, focusing on the luxury accommodation market. The company was founded in September 2011 by Takaya Shinozuka, whose inspiration stemmed from the 2011 Great East Japan earthquake. Having previously worked at Recruit on one of Japan's largest hotel reservation services, Jalan, Shinozuka leveraged his relationships with hoteliers and ryokan owners, particularly in affected regions like Fukushima, to establish a business aimed at supporting local partners.

The company's flagship product is "Relux," a membership-based booking platform launched in 2012 that provides access to a curated selection of high-end hotels and traditional Japanese inns (ryokans). Relux distinguishes itself from mass-market booking sites by focusing on quality over quantity. Each listed property must pass a stringent 100-point evaluation conducted by Relux's staff, who personally visit and assess the accommodations to ensure they meet high standards of customer satisfaction. This curation model targets travelers seeking a premium and reliable experience. The business generates revenue by taking a commission on bookings made through its platform. The members-only model also allows Relux to offer discounted rates on upscale properties without triggering price wars with competitors.

Loco Partners secured a seed funding round of $615K in March 2013 led by CyberAgent Capital, followed by a $3.1 million investment in 2014 led by Recruit Holdings, and a further $4.5 million in 2016 from the KDDI Open Innovation Fund. This series of investments culminated in a full acquisition by KDDI, a major Japanese telecommunications corporation, in February 2017. The acquisition was a strategic move to integrate Relux's booking services into KDDI's extensive mobile customer base, especially since a majority of Relux users access the service via smartphones. Following the acquisition, Loco Partners has continued to expand its reach, targeting inbound tourism from markets like China, Taiwan, and Hong Kong, and growing its membership to over 2 million users.

Keywords: online travel agency, luxury accommodation, Japan hotel booking, ryokan reservation, curated travel, Takaya Shinozuka, Relux, KDDI subsidiary, Japanese hospitality, premium travel service, hotel curation, travel tech, inbound tourism Japan, membership travel, hotel evaluation, high-end travel, online booking platform, Asia travel market, Japanese inns, luxury hotels