Tarun Gulati, Co-founder, Djubo,
did his MBA from IIM Banglore (2005). Tarun spent 1.5 years at ICICI Venture and 5 years with the NY-based D.E. Shaw & Co’s Indian Private Equity team and has been involved with deals ranging from $400 MM to $18 MM during his Private Equity career. He was among the youngest Global Vice Presidents ever at D.E. Shaw & Co at the age of 27 when he quit in 2011 to start his venture. He comes with a lot of new age hotel management experience being fully involved in hotel operations for the first 4 years of his entrepreneurial journey. Having adopted and used cutting products available globally for his own family hotel business, Tarun is very well versed with the entire Hotel Tech landscape globally and has been the first adopter of many global tech products.
is now used by close to 1000 hotels across 120+ cities in India and already manages and facilitates close to 2000 room nights every single day which is bigger than many OTAs in India. DJUBO’s offering includes digitization of the price and inventories of hotels, manage bookings from all channels like OTAs, own websites, offline bookings and travel agents. They also offer mobile friendly website templates and mobile apps with booking systems and payment gateways, online channel management for automatic integrations with multiple travel partners.
Replying to Anil Mascarenhas
of India Infoline
, Tarun Gulati says, “DJUBO’s vision is to be the number one travel intelligence player nationally & internationally by providing hoteliers with a one-stop cloud ERP for hotels, which enables high-grade occupancy yield along with giving insights into long-term strategies to generate huge revenue for their hotel.”
Given the digital disruption happening in most industries, how are you reading the situation in the hotel industry? Is technology enabling the smaller hotels to compete in any way with the larger ones?
Consumers want mobility, flexibility and real-time access to information when booking on the go. They expect seamless connectivity allowing them to book whenever they want across all platforms. Connectivity has become an essential part of the hotel creating lot of challenges for hotels – but also opportunity.
While these trends present some opportunities for hotels, they also present a dilemma because as hotels try to differentiate themselves – from each other and from online intermediaries –how can they evaluate the optimal channel distribution and keep customers while doing it profitably?
However, things have changed in the hotel industry. New hotel tech products have come into the market that has led to creating more visibility for small hotels, thus generating higher revenue for them. Give small hotels more cost effective tools to manage a complex sales system and they become more formidable to larger hotel chains.
Would you call yourself an IT company?
Technology lies at the core of the Djubo. Our motive is to empower hoteliers with simple tools to maximizetheir revenue and service delivery using cutting-edge technology. DJUBO provides its software as a Softwareas a service (SAAS) offering with real time connectivity and minimal upfront investment to the new-age hotelier. We wouldn’t call ourselves an IT company but a new-age tech company for hotels.
How many clients do you have on board? What is the revenue-sharing agreement?
We currently have over 1000 clients on board. DJUBO has a fixed subscription model along with a transaction based fee for direct bookings.
Who is your target customer? How do you manage to help hotels automate their inventory management?
Our target customers are mostly hotels ranging from small B&B’s to 4-Star hotel chains. Problems faced by the entire segments are alike when it comes to managing their reservation desk and sales channels efficiently in a way which maximizes their revenue generation potential.
Most small business owners have been recording inventory by hand and performing tasks manually in order to manage bookings from various sales/distribution channels and OTAs but with DJUBO’s software, all their offline and onlineinventory is managed via a single login. This automation helps hotels manage their inventory.
Complexities that a hotel sales desk has to deal with have increased. What are the current pain points?
The current pain points that a hotel sales desk faces are:
Increase in distribution channels-
The number of distribution channels is increasing day by day in the market andhoteliers not only have to manage inventory on old channels but also have to push inventory on newer ones. This increases their workload and complexity of the work involved.
Costly Standalone Tech products-
Hoteliers are spending on costly standalone tech products that are unable tointegrate with other online inventory distribution channels thereby losing potential customers who prefer to book online.
Hotels fixed cost optimization-
With increase in distribution channels more manpower is required to manually handle inventory and manage bookingsthereby increasinga hotelsoperational cost. This has increasingly become am area of concern for hoteliers.
How much of your service is accessed on the mobile?
We offer the following services through our mobile app: