TripAdvisor: Driving Decisions from Data, to Benefit Both Employees and the Company

Part 2: Aligning HR with Technology and Data / Planning for Acquisitions

Beth Grous, Chief People Officer for TripAdvisor, is applying the same strategy to HR and strategic talent management that TripAdvisor  utilized to become the world’s top travel site: leverage new technology and approaches to gain insights that drive decisions and positive business outcomes. In Beth’s case, that includes everything from recruiting and retaining employees to increasing equity, diversity and inclusion. In this second part of a two-part conversation, Beth talks with TCV General Partner Nari Ansari about the many ways this approach is benefiting both TripAdvisor and its people. Examples include informing business strategy with direct feedback from employees, using smarter benefits and training to retain employees, building a more diverse talent pipeline, and how her team plans for acquisitions so that people management operates effectively during and after integration.

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Nari Ansari:  Beth, thanks for joining us again to discuss TripAdvisor and your talent and people operations journey. We previously talked about aligning HR with business strategy, and jumping back in, I’d love to hear a little bit more about how TripAdvisor is using technology and data in HR operations.

Beth Grous:  Great question, and I can give you some relevant examples across different areas.

Let’s start with employee development. We want to use technology to think about learning differently and less traditionally, and we want to meet the workforce where they are. As one example, we recently began piloting Audible for Business. Employees like to get training delivered to them during their commute or during their downtime; it’s a different approach to content delivery than classroom learning, and one which our employees have embraced.   

Additionally, we seek employee feedback as a key input to how we build and evolve our people programs. We do everything from surveys to monitoring Glassdoor to, and it sounds overly simple, but just talking to people. As much as I love tools and technology, you’d be surprised at how much you learn if you just ask people what’s going on … they’ll generally tell you. And we are increasingly looking to data to help us think about our people in more detailed ways. Let’s use the turnover example. You’re never going to get it to zero attrition, so it’s really about slowing that path to exit and increasing engagement.

One of the recent data-driven insights we had is around the leave of absence journey. When an employee goes out and then returns from leave of absence—particularly one taken to welcome a child into the family—they enter a meaningful period from a retention standpoint. It doesn’t matter whether the employee is the birth parent or not. Our data indicated that one of the most important factors in determining retention during this period was the employee’s relationship with their manager; do they feel supported as they leave and return?  So with this understanding, this past year, we did two things. We increased our benefit level around leaves in general, expanding our leave policies to include a paid caregiver leave: 8 weeks fully paid for caring for a newborn, caring for an ailing family member or elderly parent. For birth moms, who also get an additional 8 weeks of short-term disability pay, this brought our full maternity benefit to 16 weeks; non-birth parents get 8 weeks. We also coupled our leave enhancements with improved manager training. The data gave us insights that if our managers aren’t paying close attention to that transition, your likelihood of losing someone just after a leave of absence increases significantly.

Nari Ansari: Clearly some impactful examples with regards to the use of data to inform your people strategy. Are there any other areas where you have experimented with the use of data to make people-based decisions?

Beth Grous: We’re in stage one—the early phase—of our overall people analytics journey, but I believe we are starting in a very good place. We have robust systems, including Workday and Greenhouse, to capture data. With 3500+ employees, we have scale, which provides a lot of data points. So we’ve got a good basis to work from.

We’re actively thinking about data and analytics and how we apply it to the workplace. Within talent acquisition, we monitor a number of key metrics: How many days does it take us to fill jobs? Where are the pinch points in the various recruiting stages and how can we speed throughput for candidates? I expect that in the future we’re going to be even more intensive about how we aggregate all the signals, both active and passive, around some interesting analytics. I think we’ve barely scratched the surface here. And that’s really exciting.

Nari Ansari:  I think certainly the world is recognizing that business is going to be intensely data-driven, and on the people management and HR side it’s very much heading in that direction as well. As we continue to shift from a manufacturing economy to a knowledge economy, many would argue that people are a corporation’s most important asset. 

Beth Grous: I couldn’t agree more.

Nari Ansari:  Along the lines of employees as a critical asset, one of the things we are also seeing many tech companies grapple with is how to make workforces more diverse. I know at TripAdvisor you have an equity diversity and inclusion department with a responsibility in this arena. Perhaps you can shed light on that department’s role and your organization’s journey.

Beth Grous: It’s an important topic and something many companies are grappling with. My personal macro view is that individual companies need to do much more, but that said, this is not a one-company solve for one-company problem or opportunity. This is an ecosystem opportunity. I think about not just building diverse and inclusive teams here at TripAdvisor but building diverse and inclusive skill sets that help the greater employment ecosystem. I had a new dad tell me recently how grateful he was for our eight fully paid weeks of caregiver leave, because it allowed his working wife to go back to work at her company, and not have to worry about finding a nanny,  childcare center, or a relative to help for those first several weeks she was back to work, because her spouse was able to be home with the baby — because of our benefits. I was excited to hear that our benefit had eased the transition to motherhood for a woman working in another organization.  It is important that all companies — sort of like all boats — rise together.

When we built and crystallized our organizational values back in 2016, one of the values we were explicit on is “We’re Better Together.” We then built a small team in the end of 2016 to focus on equity diversity and inclusion or what we call “ED+I.” In 2018, we looked at the demographics of our workforce, to be clear on our starting point. We asked our workforce what their experience here has been around the topics of equity, inclusion, diversity and belonging to really understand how people are experiencing our workplace. And that information helped inform our initial approach.

Over the last year, one of our insights was that we needed to focus even more purposefully on talent acquisition, which meant providing our recruiting team and our hiring managers with better tools and training around sourcing and recruitment delivery, and around building a diverse pipeline.  You can’t have a more diverse organization if you don’t bring more diverse people into the pipeline. And once they get here, they have to experience an authentic sense of belonging. It’s so obvious, right? And you can’t build a diverse pipeline unless you’re really paying deliberate attention to the talent acquisition process.

Nari Ansari:  That makes sense. And it ties back to our point earlier, that people are the most important asset in companies. When you do an acquisition, it’s a talent acquisition, not just the IP or the customer base. The people are a huge part of it. Most of our portfolio companies do augment their organic growth with inorganic growth as part of their strategy, and these acquisitions can introduce a lot of complexity and challenges from a people management standpoint. What role have you and your HR organization played as you think about strategizing around and integrating these various acquisitions, particularly the ones that are global in nature and may have additional unique complexities as a result?

Beth Grous: We recently acquired Restorando in South America and Bokun in Iceland. Both are companies with teams that are not located near any other TripAdvisor office. I mention this because it’s often easier to integrate acquisitions if you have a local presence in that market already, or a leader from the new parent company who joins the newly acquired team. When organizations do that, people on the acquisition side can see and understand what the parent company is about, through that leader. You have to think about it a bit differently when you’re totally remote from the center or other offices. Our business leaders, for sure, recognize that having a successful integration and change management strategy materially increases the likelihood of that acquisition being successful. So, therefore, the HR teams or people operations teams are very involved in the pre-acquisition planning. We invest a fair amount of time in that upfront planning, and I’m diligent about making sure that people have well-thought out, detailed project plans so that at the appropriate time, you can just enter execution mode and go from there. How do we think about organizational structure? How do we think about Day One change management and culture integration? How much of the TripAdvisor fabric do we superimpose on this acquisition, and how much of the local culture should continue to exist? I think it’s always a really healthy balance of those two things. An acquisition can be both a thrilling and terrifying time for people. There are many unknowns and a lot of uncertainty. Part of what we try to do is bring that human element to the forefront and recognize change management and communication are vital parts of that journey. 

We’ve started to develop a bit of a muscle around acquisition integration. And again, when we’re buying a company, we’re often as excited about the employees and what they bring to the whole of TripAdvisor as we are about the customer base or the part of the industry that they’re in. We’re thrilled to be welcoming these folks to the family, so we try to make it as seamless as possible.

Nari Ansari: Right. I’m glad you used that term, “muscle,” because it’s certainly a term that we think about a lot as we work with our portfolio companies. We also compare conducting acquisitions to building a muscle, and like any muscle, it’s developed and honed over time, through practice and exercise. And I think you get better with each one. TripAdvsior has certainly done enough where you’re seeing pattern recognition and have enhanced your approach on the people side, to ensure things go as smoothly as possible and you get all the good positive impacts you want on the other end.

Beth, my last question is a little more open, because of where you sit at the intersection of technology, people management, consumer internet, and international growth. You see a lot. What else in the world of tech outside of TripAdvisor gets you excited? What are you watching and thinking about in the tech world more broadly?

Beth Grous: Good question. First, I think technology is improving and becoming more integrated into people’s lives. Five years ago, if you had told me that people would be comfortable booking an expensive trip on their little, slow mobile phone, I would have probably raised a bit of a skeptical eyebrow. That was a big transaction to do in that way. And now, we see this happening all the time with our customers. Consumer habits and technology have shifted.

Personally, I’m very excited about the level of innovation in HR technology across the spectrum, whether that means delivering benefits in a different way, new data and analytics approaches, thinking about various talent acquisition strategies, or how we use technology to help us end up with more diverse workforces. The new technology solutions that I see today are very exciting to me as an HR practitioner.   I do think that technology will continue to transform the work of HR and it’s going to have a net positive impact on organizations, which is energizing.

Nari Ansari: As someone who invests in HR technology, I definitely see more interesting things and innovative approaches than in years and decades past. So, lots to be excited about.

Beth Grous: The last thing I’ll add, and I say it to people all the time, I am so lucky to have the opportunity to do this work in this company. It’s really fun. I’ve got a great team and work with a great team of executives. And for that, I’m very grateful.

Nari Ansari: That’s great to hear. We are very proud to have TripAdvisor in the TCV portfolio. Thanks so much for sharing your thoughts with us.

Beth Grous: My pleasure!

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


TripAdvisor: Elevating People Functions to Business Partnership

Part 1: Aligning HR with Business Strategy

When Beth Grous joined TripAdvisor as Chief People Officer, the popular travel platform was growing rapidly, with 40+ locations around the world. Beth quickly moved to develop Human Resources (HR) as a strategic partner for business functions, so that the team’s initiatives would more directly support company objectives. In this first part of a two-part conversation, Beth talks with TCV GP Nari Ansari about how she re-oriented her team for business partnership. She also explains how her team manages the employee journey within TripAdvisor as strategically as the company manages its customer journeys, so that recruiting and retaining talent is both systematic and flexible for an increasingly diverse workforce.

***

Nari Ansari: First off Beth, I really appreciate you taking the time to chat with us. It was great seeing you at TCV’s East Coast CHRO event in New York with portfolio company people and talent leaders. We had some great conversations and wanted to share a few topics with a broader audience.

Beth Grous: Absolutely. Great to speak again.

Nari Ansari: Let’s dive right in, starting with TripAdvisor. What does the company do?

Beth Grous: I think most people who have traveled, or know someone that’s traveled, are familiar with TripAdvisor. We are the world’s largest travel platform. We help about 490 million travelers every month plan, book, and get excited about having the best trip of their life. We’re a global website, and we also have a mobile app that helps travelers browse more than three-quarters of a billion reviews and opinions on over eight million restaurants, accommodations, experiences, airlines, cruises, and so on.

Nari Ansari: When did you join? What motivated you to jump onboard?

Beth Grous: I joined TripAdvisor in September of 2015. I’ve been a review writing member on the TripAdvisor platform since 2006 so I was a long-time consumer of the brand and loved it. When I got the call about the job, I thought that it would be a unique opportunity for me to take the HR skills, experience and capabilities that I had, and intersect them with a consumer brand that I have a lot of passion for.

Around the same time frame there was an increasing recognition at TripAdvisor that with 2,500 employees, and the company growing globally, we really needed to elevate the people function to work in partnership with the CEO to execute more strategically against our business and talent priorities. And so that was very exciting for me as well, thinking about the potential impact I could have.

Nari Ansari: Absolutely. You’re titled Chief People Officer, so what areas fall under your responsibility?

Beth Grous: That’s a great question, because my job description is perhaps a little different than most heads of HR.

As Chief People Officer, I have all the traditional HR domains:

  • HR business partners
  • Total rewards (compensation and benefits) and HR systems
  • Talent acquisition (our recruiting engine)
  • Learning and organizational development
  • Equity, diversity, and inclusion

In addition to those more typical functions, I have a few other areas of responsibility, including our global real estate portfolio and office experience for our 40+ offices worldwide, and our social impact function, which is a combination of both our TripAdvisor Charitable Foundation and our employee volunteerism and giving activities.

Nari Ansari: Since you became Chief People Officer, how have you established the HR team as a business partner to the rest of the organization? What steps did you take, what lessons did you learn as you industrialized the function, and what advice would you have for other HR leaders of growing tech companies out there?

Beth Grous: When I joined, I looked around and I said, “There are some places where we have real strengths, and some places where we need to fill in some blanks.” Probably the biggest shift we made was to build out an HR business partner (HRBP) function – we wanted to shift a portion of our team from being more focused on tactical day-to-day priorities to taking a pro-active focus towards business objectives and working with their counterparts throughout the organization. That shift in focus meant that some people stepped up to develop their skills and to work differently. Other team members transitioned out of the organization and, also importantly, we had a few members join from the business side.  It was a significant shift to staff and organize this HR business partner team.

Nari Ansari: That’s an impressive shift. Tell us a bit more about the role and skill set of HR business partners.

Beth Grous: The members of our HRBP team are expected to have a deep understanding of the business—financials, strategy, and how each business function aligns and interacts to execute against those objectives. I encourage the HRBP team to frame their day-to-day work by asking the question: “How am I working with people at all levels of the organization to help drive the business forward?” Much of this learning happens on the job—and our business leaders are very supportive of sharing their expertise. It has been an important shift for us, because with this knowledge and understanding, they can then support the business most effectively: defining the right organizational structure to support strategy, ensuring that we are hiring and developing a diverse and talented group of employees across the organization, and aligning rewards, as some examples.

I am fortunate that I work for a CEO and with an executive team who greatly values the input of our people and human capital team on matters not just related to HR domain areas, but also matters related to the overall business. This has been exciting and fulfilling for me and my team.

Nari Ansari: That’s great. I think what’s top of mind for many company leaders and talent leaders is retaining exceptional talent. You talked a bit at our recent TCV CHRO event that TripAdvisor very methodically thinks through, manages, and monitors the customer journey and that you and your team symmetrically are methodically thinking through, managing, and monitoring the employee journey as well. Can you talk a little bit more about what that looks like for your 3,600 plus TripAdvisor team members today spread across 40+ offices?

Beth Grous: I’m going to make an obvious statement here. If you retain and engage more of your workforce, you have less of a need to recruit people…

Nari Ansari: Right.

Beth Grous: We recognize that those two things sit in a very healthy and logical balance. We also recognize that turnover in and of itself is painful. You lose institutional knowledge. It’s disruptive to teams. It slows throughput. It slows innovation. We’re only as good as the people that we have working in the right teams and right configurations to execute against our business objective. We think a lot about how to make TripAdvisor a great place to work, to encourage not only retention, but also to drive engagement and satisfaction. Just like our sales team thinks about the “customer first”, we think about how we can put our employees first. That also means that we are taking their views into account, so it’s not just about delivering “HR services” to our employees but having a dialogue with them. This aligns with our brand, which is all about transparency and providing honest and constructive feedback. For example, we know that what makes a company a great place to work likely means different things to different people. To someone early in their career, that might mean, “I get to have a lot of different experiences and I’m promoted pretty rapidly.” To someone in a different phase of life or with different interests or needs, that might be that an individual wants a lot of flexibility in terms of the hours when they work or the places where they work. We encourage flexibility, and we also have office spaces with many different places where people can get away from their desks if that helps them work more effectively. We think about our workforce just like TripAdvisor (and many consumer-facing companies) think about their customers, recognizing that one size doesn’t fit all. That does not mean that we can necessarily be all things to all people—but we try hard to listen, learn, and discern what’s most important to our workforce, and meet our employees’ needs, as long as it makes sense for the business. 

I believe that there are some things that transcend all employees, regardless of role, experience or tenure. Employees want to come to work at a place where they understand the business objectives, they understand the strategy, and they know their role, how their role ladders up to executing against that strategy. So as a company, we spend a ton of time being transparent about those elements – we do that through company town halls, through company meetings and through various forms of communication. Communication is so important, and I don’t think we can ever do enough of it internally! We’ve found it critical for our employees to understand the business context and importantly, how they fit into that context, so that they can be most successful—and therefore we can be most successful as a company.

Nari Ansari:  That makes a lot of sense. I do think that having a much more rigorous multi-faceted view of your employee base is becoming critical for companies of all sizes and in all industries.  And I also think open communication across the organization is important, particularly when it feels like change is the only constant these days.

Another trend – and transition – we are seeing is that HR is becoming more tech and data driven to deliver on human capital and business goals. We’ll talk more about this in a follow-up Q&A and address other topics that are top of mind for today’s HR professionals and tech companies, including HR’s role in successfully executing acquisitions. Thanks so much for sharing your thoughts with us, and I look forward to our next conversation.

Beth Grous: My pleasure!

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Reshaping Online Travel and Surpassing AU$100M ARR From Sydney

Silicon Valley does not have a monopoly on innovation. Great entrepreneurs are everywhere, and we have seen a strong software ecosystem emerging from Australia and New Zealand.

We recently profiled Rod Drury’s Xero journey building a global platform out of New Zealand. Meanwhile, another TCV company, SiteMinder, just reached an important milestone of AU$100 million ARR.

SiteMinder has methodically built a global SaaS leader in hospitality out of Sydney, Australia. Coupled with its impressive revenue milestone, SiteMinder has 35,000 hotel customers in 160 countries and is reshaping the hotel distribution value chain and online travel, itself.

TCV’s Dave Yuan caught up with founder Mike Ford to reflect on his journey.

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Dave: Congratulations, Mike! Hard to believe you’ve grown SiteMinder to AU$100 million ARR. That’s an incredible milestone and a great foundation for things to come, but let’s start from the beginning. Tell us about yourself and how you got here.

Mike: I always had an interest in technology and commerce, having majored in both. This led me to consulting, where I worked on large business intelligence projects for the likes of SABMiller, AngloGold Ashanti, and Chase Bank, bridging technology teams with executive management and getting a good grounding in both disciplines. Being passionate about travel, I embarked on a year-long backpacking adventure in 2000 before I arrived in Australia and took on a three-month contract with a health technology startup to fund further travel. In 2006, I founded SiteMinder, and I am still in Sydney 18 years on, so, clearly, my adventures didn’t work out as expected!

Dave: Tell us about the SiteMinder creation story. What was the original insight? When did you know you had an idea good enough to quit your day job?

Mike: I didn’t quit outright and that was key. I consulted for my then-employer, two days a week, in order to fund the early months.

There were two major influences that led me to take the leap.

The first was the health tech startup I was working at. They were digitising paper-based claims sent from hospitals to medical funds for reimbursement, as paper-based claiming involved a long payment and reimbursement cycle. For hospitals, the digitisation of claims meant instant delivery, faster reimbursement, and a clear digital trail. At the core of the engine was a switch that converted data from different hospital systems into formats digestible by different medical fund systems.

The second influence was an investment I’d made in an accommodation business. Through that, I learned how hotel and other accommodation sales were rapidly moving away from traditional channels, such as wholesalers and brick-and-mortar travel agents, to online booking sites as travellers were increasingly turning to the internet to make their reservations. The shift in consumer behaviour drove a proliferation of last-minute booking sites in Australia at the time, such as Wotif.com and lastminute.com.au, which promised huge discounts if you booked close to the date of your stay. The issue for hoteliers was there was no means of centrally managing all of those websites and keeping their room rates and availability continuously up to date on each. So, they often chose to list on only one or two sites and miss out on others because they couldn’t manage them at scale.

I quickly realised that if I could connect hotel systems with different online channels, as I did in the medical funds world, I could synchronise hotel room rates and availability in real time. For hoteliers, the value proposition was they could get more rooms onto more booking sites to grow their reach online. At the same time, they could reduce overbookings and the operational overhead of manually inputting reservations. That value proposition helped us get a strong foothold quickly in the market.

Dave: What was it like to start a company out of Sydney?         

Mike: We were actually very fortunate to be in Sydney. As with banking and payments technologies, Australia was far ahead in terms of technological innovation in online travel. Where other markets weren’t yet embracing dynamic room rates and availability, there were many booking sites in Australia available for hotels to list on. The multitude of sites, combined with the sheer number of hotels out there, especially independent hotels, meant that conditions were ideal for our entry into the market.

Funding was a big challenge as the technology venture market was very underdeveloped relative to what it is today. The government in Australia also had a myopic attitude to how important tech and STEM jobs were to the future of the economy, so tech startups got very little support in terms of R&D benefits, and sadly that hasn’t changed. In spite of these challenges, more than 80% of our revenue now comes from overseas markets. We are a truly global business that has kept its roots deeply in the city of Sydney where it all started.

Dave: You’ve scaled past AU$100 million ARR. Was it all smooth sailing from there, or were there big doubts and moments of near death?

Mike: In the early days, moments of doubts may have been around survival. Later, they were more focused on growth or new market entry, but they’ve never quite ceased, and I suspect it’s no different for any founder.

If ever there was a near-death experience, it would’ve been pre-angel investment, when I was funding the business and paying my co-founder out of my own savings. On top of that, we learned a competitor was launching a month before us, and they had AU$100 million in funds and an existing product. We had AU$180,000 and a beta release. It was nearly a no-go decision, but I’m pretty stubborn and so we took them on, and they soon went bankrupt.

Dave: What were the big decisions along the way?

Mike: Very important decisions included:

  1. Who we were going to take money from and bring on to our board of directors. We turned down early interest from numerous VCs purely on the first meeting dynamic.
  2. Whether we were going to go global or dominate locally, and what the timing would be.
  3. What not to chase. There are so many opportunities, and you can lose focus quickly unless you’re very clear about what you are and are willing to let go of opportunities that may seem attractive but don’t provide long-term benefits.

Additionally, the most crucial decisions involve the people you choose for the journey and the timing of bringing on key talent. The outlook of a founding CEO, certainly in the formative years, can differ substantially from those of a professional CEO. As a founding CEO, you have grown the team and the business from nothing. You have loyal, committed, and talented individuals who have helped you get the business to a particular stage so the company culture is more familial. Yet, through high growth, it’s hard to stay on top of skills and challenges across the business, and you may find yourself in a situation where you either don’t recognise that such deficiencies exist, or you don’t take appropriate measures quickly enough to address them. Over time, you get better at identifying the skills you need for the future, ahead of the curve.

Dave: How has SiteMinder succeeded in a field that has gotten so much competitive attention?

Mike: I think the definition of success is different for everyone. There are many travel tech companies that I would consider successful, even if they may not all have the size and growth trajectory of SiteMinder.

It sounds cliché, but it comes down to the deliberate process of ensuring many ingredients come together in the right way, at the right time, and in the right sequence. We’ve had a focused and smart go-to-market strategy, plus we over-indexed on personalised support for our customers and doubled down on localising our products and service for many different countries. We’ve invested in strong operational centres around the globe to provide true round-the-clock sales and customer service, and we’ve hired smart people. I could go on, but at our core we are product-driven and customer-obsessed. That permeates our culture and is key. Even if your product is average, you can have early success if your sales and marketing are great. In the long run, you can only continue your success if your product is truly market leading.

Dave: As you look forward, what are the big opportunities for hoteliers? How might this translate into benefits for the consumer and traveller?

Mike: Many hoteliers are still stuck in their traditional ways and aren’t open to the possibilities that technology can offer in making a world of difference. This does vary between hotel segments such as independent versus chain, full service versus limited service, regional versus city, and even by country. The vast majority of hoteliers still struggle to navigate the changing online landscape and are overwhelmed by the extent of the choice out there.

It’s for this reason that we’ve created an ecosystem, not just of our own technology, but of all other technology players that can help hoteliers navigate the online world in search of guests. If hoteliers can connect with customers at every touchpoint throughout their buying journey, they can ultimately create greater guest experiences long before those guests set foot in their lobby and long thereafter.

Dave: If SiteMinder fulfills its mission, what role can it play in the changing online travel ecosystem?

Mike: SiteMinder currently connects to 700+ partners within the travel ecosystem, so hoteliers can hook everything they need into their property management system and harness the power of integration, openness, and choice. Essentially, our platform is the most comprehensive and effective way for hoteliers to bring guests to their hotels, without having to think about or manage technology. It gives them more time to spend on the guest experience, which is the part they really enjoy.

If hoteliers can choose any best-of-breed solution to optimise their opportunities in acquiring guests in an increasingly online-driven world, we’re doing our job.

We also play a big role in the value chain in online accommodation, specifically the supply equation, by connecting hotel room rates and availability in real time to points-of-sale such as booking sites. We enable those booking sites to gain traction in core markets, where they otherwise can’t access a supply of rooms to sell.

There have been middlemen aggregators in the past that have rolled up supply for booking sites yet we connect the room supply directly to booking sites or room demand sources, so there is no ticket clipping and dilution of margin between the supplier (the hotel) and the seller (the booking site). In doing so, we have streamlined the supply chain for hotel rooms, rates, and content.

Dave: SiteMinder’s opportunity is also unique as a SaaS company. Vertical SaaS is seeing a renaissance with SaaS companies taking on platform and network characteristics, meaning “SaaS as a Platform”. What does SiteMinder look like as a SaaS business model over time?

Mike: We started out with a distribution platform for hotels. Over time, we recognised the importance of the direct sales channel and expanded our platform to integrate a hotel’s own website, so they could manage both their indirect and direct sales channels.

Over the years we’ve designed our platform to be more proactive and have powered it with business intelligence that steers our customers and makes them aware of opportunities to improve their hotel business. For example, our platform makes hoteliers aware of changes in market conditions or demand, so they can maximise their guest acquisition capabilities in a rapidly evolving online landscape.

The next evolution is really exciting. We recognise that there are many great applications and tools out there for hoteliers, and they can all improve a hotel’s guest acquisition strategy. These may be upselling tools, airport transfer services or activity bookings, revenue management systems or anything in between. We know that one company will never build the best of all these things. Our brand essence has always been one of openness, so we’ve developed a way to seamlessly link a hotel’s property management system to all the different applications. In doing this, our customers will be able to use all the best-of-breed applications available out there in combination with our own platform. If we are successful in this endeavour, we will have the most open and connected platform the hotel industry has seen, with the greatest number of hotel participants (we already have 35,000 today).

Dave: Outside of SiteMinder, what in online travel gets you excited?

Mike: One important shift is the rise of tours and activities moving increasingly to online with dynamic inventory and pricing. Driving this is people’s desire to seek experiences, not just flights and accommodation. We’re seeing increasing demand among consumers to package their accommodation, services and ancillaries, so they can get the best experience out of their accommodation and the local destination.

Somewhat tangential is the rise of personalisation. For a more personalised experience, including destination advice, many travellers still use a brick-and-mortar travel agent to plan their trip. That said, we’re also seeing the growing dominance of online booking sites. Alone, neither of these options is ideal for at least one segment of the leisure travel market, so I think we will increasingly see hybrids where booking sites get better at offering deeper, more human advice and personalised service. This may even include speaking to a local human expert when booking online. We are already starting to see signs of that happening now.

There are also relatively new entrants like Google making a wave in the space with disruptive models that are attractive to hoteliers. I think the race is on for OTAs to create a seamless end-to-end experience for the consumer, including research and advice, flights, hotels, car hire, transfers, in-destination activities and experiences, restaurants and everything in between.

Dave: Thanks so much, Mike, and congratulations again! AU$100 million ARR is an amazing milestone that only a few reach. Savour it!

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Travel Tech Company Sojern Announces Financing Round Led By TCV

SAN FRANCISCONov. 13, 2018 — Sojern, the travel tech company known for its traveler path-to-purchase data and innovative travel marketing and distribution solutions, today announced that growth equity firm TCV has led a $120 million financing round in Sojern.

Sojern looks to build on its years of rapid growth and successful execution—recently marking 13 consecutive quarters of profitability—to accelerate solutions development for its clients, which include 93 percent of the world’s Fortune 500 travel companies and thousands of independent hotel properties and local tourism providers. As part of the transaction, TCV general partner Woody Marshall joined Sojern’s Board of Directors. TCV brings extensive experience in the travel and marketing tech spaces with investments in Airbnb, Expedia, Orbitz, HomeAway, TripAdvisor, SiteMinder, ExactTarget, Act-On and Ariba.

Sojern offers a scalable model for driving bookings through a blend of programmatic display, video, social, mobile and native advertising tailored to reach travel audiences as they move through the process of planning and researching an upcoming trip. The company has closely followed trends in travel marketing, acquiring Facebook and Instagram Marketing Partner Adphorus in late 2017, testing into connected TV, and making its real-time audiences available to top clients via a programmatic in-house offering.

“At Sojern, we aim to know all the world’s travelers and move them from dream to destination. Our teams dig deep into the traveler path-to-purchase so we can help our clients win the competition for bookings. We’ve used those insights to drive $13 billion in bookings so far, with the goal of transforming digital marketing into digital distribution,” said Sojern CEO Mark Rabe. “With this new partnership with TCV, we’re excited to continue driving efficiency into the ~$100 billionbeing spent by travel brands around the world.”

Woody Marshall said, “We have been watching Sojern’s rapid rise in the travel technology space for several years, and we were impressed with Sojern’s leadership position in the space and its unique, scalable model for influencing travelers worldwide. Sojern’s ability to both conceptualize a better marketing experience for travel organizations and their steady execution over the past decade, as well as their innovative business strategy, strong executive team, and inspiring company culture made them a natural fit for us.”

About Sojern
Sojern (www.sojern.com) is a leading provider of digital marketing solutions and real-time audiences for the travel industry. Sojern has specialized in traveler path-to-purchase data for more than a decade and has delivered $13 billion in bookings for clients to date. Recognized as a Deloitte Technology Top 500 Fastest Growing Company for 5 years in a row, Sojern is headquartered in San Francisco with 13 global locations.

About TCV
Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. Investments include Airbnb, Altiris, AxiomSL, Believe Digital, Dollar Shave Club, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, Rent the Runway, Sitecore, Splunk, Spotify, TourRadar, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.

PRESS CONTACTS:

Sojern

Scott Thornburg

+1 (415) 816-8844

scott.thornburg@sojern.com

TCV

Katja Gagen
+1 650-614-8264

kgagen@tcv.com