Agoda's C-Suite: Global Challenges, Working With Booking Holdings and Superapps

25.06.2024 - 12:13 / skift.com / Peden Doma Bhutia / Omri Morgenshtern

From its early days, Agoda has today evolved into a major player in the online travel space in Asia. Today, the online travel company is known for its advanced tech and three people have been an integral part of that journey: CEO Omri Morgenshtern, Chief Technology Officer Idan Zalzberg and Chief Product Officer Ittai Chorev.

Skift recently interviewed the three Agoda executives, who joined the company in 2014 following the acquisition of their startup Qlika by Booking Holdings.

“At the heart of it, Agoda stayed a very similar company with a passion towards innovation and doing the right thing for the customer. Also, in the last 10 years, the expectations from customers and the complexity of the online travel space has grown significantly,” said Chorev.

The Agoda executives said that the talent mix in Agoda today is very different than what it a decade ago. And that’s evident in its global recruitment strategy.

The company attracts top talent from around the world, including many from Silicon Valley itself, while also working with what it calls “the local smarts on the ground.” By bringing talent from the outside, Agoda also educates the local talent.

Zalzberg emphasized that the focus isn’t solely on capability but rather on determination and resource allocation: “It’s not about whether we ‘can’ do it, but whether we ‘should’ do it.”

Morgenshtern cited some examples: “A few years ago, we used virtual credit cards (VCCs) from third-party companies to pay our partners, offering them quick access to funds. This process became increasingly complex, leading to discussions about acquiring companies to manage it, potentially costing billions. Instead, we decided to build the capability in-house within 6-9 months.”

Additionally, unlike many large companies, Morgenshtern said that Agoda doesn’t rely heavily on cloud services. “We run our own data centers and have made significant progress in developing our private cloud. This approach allows us to save substantial amount of money, which we can then invest in improving our products.”

The travel sector has seen significant changes over the past decade, presenting both opportunities and challenges for Agoda. While the world is becoming smaller, providing a localized experience for these travelers is crucial, but challenging due to scalability issues, Morgenshtern said.

Customizing products for each country makes maintenance and costs skyrocket. “One of our biggest challenges is managing tech changes to build a robust system. We aim to offer ‘internet translation services,’ ensuring a Japanese traveler accessing our site from Bangkok gets to pay with the options and receives the customer support they are used to. This is easier said than done. We spend a fortune