(The article below is part of my weekly column that I write for the DTNext Newspaper)
Technology is bringing in changes to the way we travel and stay. Business models are changing in the transportation and hospitality industry. There used to be a time when you had to own a car to live a comfortable life. It gave you freedom of movement and afforded you the flexibility. However, did you know that our cars remain idle for 90% of their life? Think about it. We mostly use it for the commute from home to office and back and at other times, it remains parked at the car park at the office or at the garage at home.
John Zimmer, a student of hotel management at Cornell University, saw an opportunity to put to use the idle hours of the cars. He along with his friend created an app called ‘Lyft’ which helped car owners offer rides to others while having the ability to earn money. Now, that simple idea has spawned a company that is worth over US$ 5 Billion dollars.
The hotels have a curious case that has baffled me for long. Most people who book a hotel room only stay a few hours during the day. Most use it to quickly take a shower, dress up and rush to series of meetings. Even though you only use it for a few hours and you were never physically in the room for most of the day, you still have to pay for the entire day. That’s the way hotels operate around the world.
Vinil Reddy, who was earlier a CEO of a real estate company, saw a mismatch in what the business travelers wanted and what the industry offered. Being an entrepreneur at heart, he sensed a business opportunity. He created an accommodation space, aptly titled ‘FreshUp’, where people can stay at the hotel for a few hours and only pay for the hours they have used. He realized that there are business travelers who are day travelers. They are the ones who travel to another city in the morning, finish their meetings and leave back to their home at night. For such people, the important things are a place to rest a couple of hours, take a nice hot shower, get dressed up, use the WiFi to get some work done and head for the meetings. Vinil’s concept of FreshUp is minimalism with purpose.
We notice the same ‘minimalism with purpose’ concept with Airlines. Recently, I got to sit down with Ajay Singh, the founder & CEO of SpiceJet. When he founded the airline, most of his competitors were full-service carriers (think Jet Airways and Kingfisher Airlines) which offered meals on board. Ajay created a ripple when he began to charge for food. He realized that passengers wanted cheaper airfares and hence detached the cost of food from the ticket cost and made is optional. He focused on the bare essentials of on-time arrival and lower cost. Now, SpiceJet makes a profit of Rs.One Crore every day (yes, Every Day!) while Kingfisher Airlines is defunct.
These three case studies teach us an important lesson. By using business common sense, leveraging the power of technology and thinking outside of the box, you can create new businesses that work.
I’m right now in Bangalore to attend the CNN Asia Business Forum, which is an invite only event that brings together key business leaders and thought influencers to assess India’s position in a tumultuous global economy.
I’ve lined up podcast interviews with very interesting personalities. The list includes:
Ajay Singh, CEO of SpiceJet Airlines
Phee Teik Yeoh, CEO of Vistara Airlines
Nandan Nilekani, Cofounder of Infosys
Yesterday I had a very interesting interaction with Sunita Rajan, Senior Vice President, Advertising Sales at CNN.
In the conversions, I look forward to digging into their career journey, life lessons and explore new ideas and innovations that capture their imagination.
Very excited for the event.
Podcast Interview with CK Kumaravel, CEO of Naturals Salon. How He Built India’s Largest Chain of Beauty Salons.
Imagine if, a decade ago, you started your first company. After showing initial signs of success, it suddenly tanks, dragging your property and savings with it. It leaves you with a staggering debt of ₹5 crore. What do you do next?
Well, if you were CK Kumaravel, you get up, dust yourself off, train your subconscious mind to think positively and create one of the largest chains of beauty salons in India! In this podcast, the CEO and co-founder of Naturals Salon talks about the failure, about how, despite studying in a Tamil-medium school, he made it a point to learn English because his father had once said “Business success and English are related”. He also shares other important business lessons. If you are an aspiring entrepreneur or a businessman, then you will benefit immensely from this podcast.
For some of my New Year resolutions, I’m taking help from technology. Here’s that story in today’s Deccan Chronicle newspaper.
Thanks to this phone recording app, recording podcast interviews and taking brief from clients has become so much easier. Here’s my review in today’s Deccan Chronicle newspaper.