On August 25, Cloud PMS (Property Management System) company Hotelogix, hotel management software company Axisrooms and customer engagement solutions platform RepUp, announced their merger into Hotelogix PTE, headquartered in Singapore.
The merged entity will deliver solutions across operations, distribution, reputation, marketing automation and guest-facing technologies, emerging as one of the largest SaaS platforms for the hospitality industry in the Asia-Pacific region. Before the merger, Hotelogix was headquartered in Noida, Axisrooms in Bengaluru and RepUp in Gurugram. Hotelogix was founded in 2008, Axisrooms in 2011 and RepUp in 2014.
It is claimed that the merger of the three entities has given Hotelogix PE a customer base spanning more than 100 countries, working with more than 10,000 businesses including hotels, resorts, campsites, villas and vacation rentals, among others. With more than 200 employees, the company now aims at acquiring more than 20,000 customers in the next three years.
Accel Partners, Vertex Ventures, Saama Capital and Seedfund amongst others are existing investors of the companies and are backing the merger.
According to the executives of the three companies, the merger would enable them to harness the power of data across operations, distribution and customer experience systems to deliver a better experience to its clients’ customers.
Aditya Sanghi who will continue to be the CEO at Hotelogix, said, “With this merger, we will have a wide range of solutions to offer which will give superior value to our customers and increase our share of wallet. This definitely gives us a huge competitive edge against our competitors at a global level.”
The merger of the three hospitality companies comes amid the Covid-19 pandemic, with the hospitality industry facing a severe revenue crunch, leading several companies to either lay off employees or announce furloughs or pay cuts.
In April, Indian hospitality giant OYO’s CEO and founder Ritesh Agarwal, in a video message, talked about the company’s hotel occupancy rates falling by 50-60% and the company’s balance sheet coming under severe stress. The decline in OYO’s revenues led to salary cuts, furloughs and layoffs across all 80 countries it operates in.
Besides OYO, travel and hospitality SaaS startup RateGain also announced furloughs and pay cuts for employees in April, with the management team taking 50-100% pay cuts, to tide over the financial crisis caused by the Covid-19 pandemic.
Considering that the pandemic had brought the travel and hospitality industry to a standstill, RateGain said that most of its customers, competitors and suppliers were in survival mode from March onwards. The hospitality brands and OTAs associated with RateGain include Leela Hotels, Makemytrip, OYO, RedDoorz, Lufthansa, Finnair Holidays and Bangkok Airways, among others.
The government allowed hotels and restaurants to resume operations from June 8, also issuing a 31-point advisory for maintaining safety measures and sanitation to prevent the spread of Covid-19.