RedDoorz prevails at SBR Technology Excellence Awards for Big Data - Hospitality & Leisure
RedFox from RedDoorz is a dynamic pricing and inventory management tool for revenue optimisation and operational excellence.
Since the hotel chain unleashed RedFox, a dynamic pricing and inventory management tool for revenue optimisation and operational excellence, the business has grown in scale and reduced operating costs substantially.
At present, the path towards business competitiveness is technological innovation, and this is particularly true in a vibrant economy like the Asia-Pacific region. That is why Singapore Business Review (SBR) organises the Technology Excellence Awards to celebrate the achievements of companies that have launched innovative products, services, and strategies. The 2019 edition reveals a new line-up of winners, whose merit has been judged on the basis of uniqueness and innovation, effectiveness and impact, and dynamism in an occasionally unpredictable market.
A laudable winner this year is RedDoorz, one of Southeast Asia’s fastest-growing hotel chains. The company’s geographical expansion has brought concerns such as maintaining leanness without compromising profitability and operational efficiency, balancing price and inventory, as well as managing manpower and numerous demand channels. The solution to these complexities has come in the form of RedFox, a revenue management tool that promotes efficiency while enabling the business to double its scale in multiple locations with different market behaviour. RedFox represents a data-driven system that can identify trends by incorporating multiple indicators on user interactions, marketing, and transactional datasets. RedFox also helps in price forecasting by applying a large volume of distributed data, including geography, occupancy rates, profitability, type of the day and seasonal factors, which are closely related to the time of the day. RedFox’s other capabilities are the following:
- Full automation with minimum need for manual intervention
- Managing property requests for out-of-order inventory for select dates
- Handling last-minute market fluctuations with minimal manual effort
- Automated handling of overbooking and low occupancy
- Conducting sales on selected properties and rooms at a fixed price for a defined inventory target
“The system understands the current revenue situation and updates the hotel prices based on potential revenue forecasts. Pricing, occupancy, and demand are predicted by applying the historical forecasting model of machine learning. With just a few clicks, this scalable system can be replicated anywhere,” explained Kunwar Asheesh Saxena, co-founder and CTO of RedDoorz.
What are the quantifiable achievements of RedFox? First, the company’s profitability increased by 4 points and operating costs were cut by 6%. Furthermore, the chain’s poorly performing hotels got a 52% boost in profitability and the team’s efficiency rose by 90%. Improvement was also seen in customer acquisition, retention, and partner experience.
The progress brought by RedFox has been an inspiration for RedDoorz’s personnel. Whereas previously, they were anxious about setting competitive prices and loss of revenue, they can now “sit back and invest time in activating better marketing and promotion campaigns. RedFox has helped reduce overbookings. Our average rate of property addition per month has shot up by 120%,” said Mohit Gandas, General Manager for Indonesia. According to Dadan Widana, Head of Reservations for the same country, “Our reservation and team managed inventory of over 200 properties. We do not have reservation and customer care looking for shade when bookings numbers shoot through the roof. RedFox is a boon for us.” Vivek Singh, Country Head for Vietnam, affirms that “average daily rate grew by 3.5% month over month for top-performing properties in Indonesia. In Vietnam, [RedDoorz] has reduced dependency on reservation and pricing team to add new properties in the system. We want to become the top contributor to RedDoorz room nights and RedFox has made that [goal] easier to achieve.”
As RedDoorz increasingly integrates big data into multiple aspects of the enterprise, RedFox is a valuable instrument that has raised the company’s performance standards. Moving forward, the hotel chain aims to use artificial intelligence to further enhance RedFox and maintain the long-term operational excellence of business assets.
The Technology Excellence Awards, presented by Singapore Business Review, was held on 30 May 2019 at the Conrad Centennial Singapore.
This year’s nominations were judged by a panel consisting of Cheang Wai Keat, Head of Advisory at Ernst & Young LLP; Darwin Thio, Director, Cybersecurity & Technology Services at Nexia TS; Daryl Pereira, Head of Cybersecurity at KPMG; Evelyn Lim, Executive Director, Tax Advisory at BDO LLP; and Jonathan Kok, Co-Head of Technology, Media & Communications Industry Group at RHTLaw Taylor Wessing LLP.
Check out the event photos during the awards night here.
If you would like to join the 2020 awards and be acclaimed for your company’s exceptional technology innovations, please email Julie Anne Nuñez at firstname.lastname@example.org