New Delhi, July 3 -- The travel sector has experienced a major technological transformation in recent years, making it more accessible, convenient, and personalised. Digital transformation in the online travel services industry has streamlined booking processes, enabled virtual experiences, and fostered a more connected and informed traveller.
Agoda, a Singapore-based global online travel agency with a stronghold in the Indian market, has adapted to the growing demands of consumers, with revenue soaring from $1.2 billion in 2020 to $2.2 billion in 2024. In an interview with TechCircle, Idan Zalzberg, chief technology officer (CTO) of Agoda, credits the company's competitive edge to its robust technology and data platform.
Zalzberg emphasised that Agoda prioritises a do-it-yourself technology approach, primarily operating on-premise and leveraging open-source technologies to minimise reliance on cloud technology. He believes that mastering technologies like cloud, CX, data analytics and AI-based tools, among others, is crucial for efficient scaling and agility, key to Agoda's success. The company's strategy focuses on avoiding vendor lock-in by using replaceable technologies.
Agoda's in-house technology team comprises approximately 1800 people worldwide, informed Zalzberg. Bangkok is Agoda's largest tech office, followed by India, as the company heavily relies on tech talent across functions. Then there's a diverse set of knowledge workers in Singapore, the USA and other global offices.
"This diversity extends to roles, as engineers can move between areas like server maintenance, network infrastructure, analytics, application development, front-end technologies, app building, and data science, ensuring strength across all professional layers," he mentioned.
Zalzberg noted the significant digital transformation in the online travel sector since the Covid-19 pandemic. He explained that Agoda has evolved into a comprehensive travel planning service offering hotels, flights, and activities. "A key challenge is managing the overwhelming amount of information," he said, highlighting the potential of Generative Artificial Intelligence (GenAI) to personalise information, ensure relevance and build trust.
Agoda is heavily invested in Gemini, and Zalzberg believes GenAI enables processing unstructured data at scale, aligning it with structured data and analysing customer conversations to identify information gaps and improve data quality. Agoda further has a clear, open-source strategy, and this approach isn't just about cost savings; it's about being part of the technology's evolution.
Cybersecurity is also a critical focus for the travel company. As a major online travel platform, companies like Agoda are a frequent target for cyberattacks. "Our security team employs comprehensive measures, including GenAI-powered protections, to safeguard customers, striving to deter attackers and protect users," said Zalzberg.
Zalzberg informed that technology personnel costs are among Agoda's highest expenses, second only to marketing, viewing technology investment as ROI-positive. "We will continue to fully leverage GenAI to process previously unstructured data, such as survey feedback, to extract actionable insights, even applying advanced technology to employee feedback processing," he said.
Looking ahead, Agoda is focused on improving its flight and activities offerings to become best-in-class and innovating in connected trip experiences by combining different products and channels, believing GenAI offers exciting possibilities for integration.
The company is currently focused on improving payment options, including partnerships for co-branded credit cards and instalment payment plans, to make travel more accessible, and enhancing its product stack in tier II cities. "We're focusing on domestic travel and ensuring relevance for all travellers."
Agoda is active on WhatsApp and supports Hindi and other local languages, pricing, and localisation to create an international app that feels local. For Agoda, this is one approach that has been a centrepiece to their continued success. Zalzberg said that the company's vision is firmly rooted in maintaining a strong local presence while expanding its global reach. "For us, technology is the foundation, and our vision is to be local at heart, global in reach." A strategy that reflects the aim of offering customised experiences tailored for regional markets, yet providing access to the global travel network.
Zalzberg believes that companies that can remain agile in the face of disruption, relentlessly seek to innovate, and actively comprehend the cultural nuances of their growing customer base will lead the way. Agoda strives to be a comprehensive travel partner by continually integrating AI and innovating its services. "Our vision is to create smooth and efficient travel experiences, meeting the evolving needs of customers. Continuous innovation and service expansion are central to Agoda's strategy for staying competitive in the online travel services industry," he summed up.
Published by HT Digital Content Services with permission from TechCircle.