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TIACON25 Product Stage - Making your product truly omnichannel
Topic
Omnichannel Strategy in Hospitality
Key insights
- RedDoorz operates the biggest fleet of hotels in Indonesia and Philippines
- Nitin is the SVP of product technology and data at RedDoorz
- RedDoorz started 10 years ago with one hotel in Jakarta
- RedDoorz now has about 5,000 hotels
- RedDoorz sees about 12 million guests staying in its properties every year
- In total, RedDoorz has served about 30-35 million guests
Perspectives
Focused on Reddolce's omnichannel strategy and challenges.
Reddolce's Approach
- Highlights the importance of offline constraints in product functionality
- Emphasizes the need for a central system to manage user experience
- Argues that customer acquisition costs have significantly increased
- Claims that OmniChannel is essential for business growth
- Proposes using AI to enhance customer interactions and operational efficiency
- Describes a five-step customer journey to ensure seamless experiences
Challenges in Implementation
- Questions the effectiveness of relying solely on digital experiences
- Challenges the notion that all customer interactions can be standardized
- Raises concerns about maintaining service quality across numerous properties
- Inquires about the validity of customer feedback in a large network
Neutral / Shared
- Acknowledges the need for a unified customer experience across channels
- Recognizes the role of technology in enhancing operational processes
Metrics
hotel_count
about 5,000 hotels
total number of hotels operated by RedDoorz
A larger hotel count indicates a strong market presence and potential for revenue growth.
And now we have about 5,000 hotels.
annual_guests
about 12 million guests
number of guests staying in RedDoorz properties each year
High guest turnover suggests strong demand and brand loyalty.
We basically see about 12 million guests staying in Reddolce group properties every year.
lifetime_guests
about 30-35 million guests
total number of guests served by RedDoorz since inception
This figure reflects the company's growth trajectory and market penetration over time.
we have served about 30-35 million guests.
population_penetration
10% of Indonesia population
percentage of Indonesia's population that has stayed at RedDoorz
Indicates significant market reach and brand recognition within the country.
10% of Indonesia population has at some point of time has stayed in Reddolce.
customer_acquisition_cost
4x times
increase in cost of acquiring customers from Google over 10 years
This significant increase impacts marketing budgets and strategies for businesses.
The cost of acquiring customers from Google has increased 4x in the last 10 years.
business_percentage
80%
percentage of business from integrations and network penetration
Indicates the importance of diverse channels for business scalability.
80% of our businesses coming from these detailed integrations and the network penetration
automation_percentage
40%
percentage of online and social interactions automated by AI
Highlights the role of AI in improving operational efficiency.
AI agents have automated 40% of all the online and social interactions
feature_development_progress
50 percent %
progress of feature development in relation to overall operational effectiveness
Indicates that feature development alone is insufficient without proper training and communication.
feature development is only half job half done.
Key entities
Timeline highlights
00:00–05:00
RedDoorz has expanded its hotel network significantly, now serving millions of guests annually, which enhances its market presence in Southeast Asia.
- RedDoorz operates the biggest fleet of hotels in Indonesia and Philippines
- Nitin is the SVP of product technology and data at RedDoorz
- RedDoorz started 10 years ago with one hotel in Jakarta
- RedDoorz now has about 5,000 hotels
- RedDoorz sees about 12 million guests staying in its properties every year
- In total, RedDoorz has served about 30-35 million guests
05:00–10:00
The cost of acquiring customers has quadrupled over the last decade, necessitating brands to adopt a more expansive and diversified marketing strategy to remain competitive.
- We deal with humans who are managing the properties and staying in those properties
- Acquiring customers has become much more expensive than it was 10 years ago
- The cost of acquiring customers from Google has increased 4x in the last 10 years
- Strategies that used to work 10 years ago to acquire customers do not work anymore
- Baron Shab emphasizes that brands need to be everywhere customers look
- Focusing on light buyers instead of just loyal users is essential for growth
10:00–15:00
AI agents automate 40% of interactions, enhancing customer engagement across multiple channels, leading to increased business growth.
- business comes from different channels
- % of our businesses coming from detailed integrations and network penetration
- AI agents have automated 40% of online and social interactions
- customers do not follow a single path
- discovery is offline
- customers can book online but pay at the reception
15:00–20:00
RedDoS has developed systems that function autonomously to manage user experience, which reduces reliance on human performance and enhances operational efficiency.
- Making products work with offline constraints
- Building systems like a central brain to control experience
- Codifying all policies, SLAs, and actions to eliminate ambiguity
- Feature development is only half done; training and communication are essential
- Providing training materials and tutorials for users
- Ensuring alerts are in place for when things go wrong
20:00–25:00
Reddolce implements measurable KPIs and AI analytics to ensure staff adherence to policies, leading to improved customer service and operational efficiency.
- Red Dolce uses clear measurable KPIs to train people and set expectations
- There are incentives and penalties in place to motivate employees
- AI video analytics are used to monitor staff interactions and adherence to policies
- Customer feedback is collected through various platforms for sentiment analysis
- Surprise audits are conducted to ensure standards are met across properties
- A single data lake is maintained to track all events, actions, and alerts
25:00–30:00
Implementing a targeted pricing strategy across appropriate channels enhances customer engagement and drives business growth.
- It is important to know the right channel to sell and where customers are
- Pricing strategy should consider different channels, such as e-commerce versus physical locations
- Cost plus pricing is used to offer the cheapest rooms on the app by passing on cost savings to customers
- Perception based pricing considers how customers perceive the product and their willingness to pay
- Brand identity must be protected by ensuring products are sold in appropriate channels
- Customer experience should be consistent across all booking platforms