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Jia En Teo, Co-founder of Roomorama

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Jia En is one of the founders of Roomorama.com, a leading platform for short-term accommodations worldwide. Her passion for travel, combined with the frustration at the lack of affordable, yet decent accommodation, led her to found Roomorama with her then boyfriend, now husband, Federico Folcia. Prior to Roomorama, Jia En worked at Bloomberg, in New York.

Today, The Asian Entrepreneur is joined by Jia En for an insightful interview about her experiences as an entrepreneur.

What exactly is Roomorama?

Roomorama is the largest platform for professionally-managed properties worldwide. Roomorama currently has more than 120,000 properties, in more than 5000 locations worldwide (and growing).

How did you come up with the idea of Roomorama?

Federico and I are avid travelers. Before we started Roomorama, we were in our mid 20s, tired of staying in faceless, cookie-cutter budget hotels and backpacker hostels, yet we weren’t quite able to afford swanky boutique hotels either. We looked around us and thought that there must be thousands of apartments sitting empty at any one point in time – how do we find them, how do we book them, and how do we convince the other party that we are legitimate and safe?

At the same time, whenever we traveled, we always rented out our place to travelers coming to NY via online classifieds like Craigslist. However, we never really knew who was on the other side of the transaction, we had to deal with no-shows, and we had no way of showcasing the positive feedback we received.

To solve all these problems, we started Roomorama – we wanted to create a platform that would make it very simple and safe for travelers to find and book a place to stay anywhere in the world, and for homeowners to be able to rent out their place in a hassle-free way.

Could you walk us through the process of starting up Roomorama?

Starting out was very difficult. First of all, because neither Federico nor I are technical, we had to find a company to help us build a website based on our wireframes that were initially all hand-drawn on paper!

The next challenge was to convince the first few hosts to sign up with us, with no history or track record to speak of. We went out and met every single one of the first few hosts, and visited their properties to make sure they were legitimate and of good quality. We then had to go out and find the people who would actually come to our site to find and book an apartment. I remember personally posting ads, handing out flyers in the cold, and actually calling all the leads that came to our site, and tried to make a sale happen.

While the concept was starting to gain traction in New York, we still had to convince people everywhere else, that staying in an apartment or home was actually a better idea than staying in a hotel. We did this through active engagement with the media, networking as much as we could, and just being advocates and ambassadors of this new trend of travel ourselves.

How has it been like managing the business since?

Things have changed a lot since we started. We have grown from a small concept to an actual company, with 45 employees worldwide, and thousands of people around the world using our product and service. At the same time, we always feel like we could be doing more – we never stop pushing ourselves to keep innovating and keep changing. There are plenty of ups and downs. We have small victories everyday, but also run into challenges and seeming failures as frequently.

Now, in addition to the problems we had to solve as a small company of two, we also have to manage many more people, and every day, we learn that that is probably the hardest thing to do.

Did you find anything particularly difficult during the startup? How did you overcome it?

Yes we definitely had some big difficulties. We were actually sued very early on by someone who wanted to join our team as a partner but who left after a few months. It was an unfair lawsuit, but we had no choice but to defend our case. This dragged on for the first two years of our existence, during which time we had to bootstrap and try to grow organically because we were not able to go out and raise money to scale fast. We overcame it by not letting the problem overwhelm and paralyze us – we every hurdle one step at a time, and tried to see the bigger picture and we stuck to what we really believed in.

Yes we definitely had some big difficulties. We were actually sued very early on by someone who wanted to join our team as a partner but who left after a few months. It was an unfair lawsuit, but we had no choice but to defend our case. This dragged on for the first two years of our existence, during which time we had to bootstrap and try to grow organically because we were not able to go out and raise money to scale fast. We overcame it by not letting the problem overwhelm and paralyze us – we every hurdle one step at a time, and tried to see the bigger picture and we stuck to what we really believed in.

It was not easy convincing everyone about the concept of staying in someone else’s property – there are many pre-conceived notions and cultural barriers that made it hard for everyone to buy into the idea immediately. However, we saw this as a necessary challenge to overcome – the point of every business is for the people running it to help others see the benefits of the product/service they are providing, and continue tweaking the product/service until people are willing to use it and pay for it.

Do you face a lot of competition in this industry? What is your strategy against your competition?

Yes, the travel industry is very competitive, and the short-term rental industry has certainly gotten more competitive since we started as well.

Roomorama’s focus is on the B2C space, meaning that we work mostly with professionally-managed properties. In fact, 80% of our properties are professionally-managed. By working with professionally-managed properties, we are able to assure higher quality and greater reliability for our customers.

Further, we want to “hotelify” the booking experience for our users, and make it as seamless as possible. Right now, booking a property can take anywhere from a few hours to a few days, and we want to make that instantaneous. We are the first player in the market to offer instant bookings, and while most of the properties for which this is available are in Europe at the moment, we are looking to roll it out for as many properties as we can around the world.

What can you tell us about the industry? Have you developed any industry insights that you could share?

Short term rentals are becoming more mainstream – people no longer only consider hotels when they travel. It is not only an economic incentive for this trend, but we see that travelers are becoming more savvy, and are seeking more unique experiences when they travel. Travelers these days want to be able to tell a story, and really live like locals, rather than be typical tourists.

We have also noticed that Roomorama, and sites like ours, have made travel a lot more accessible to everyone. For example, people who may not have been able to afford traveling with their extended family are now able to find a place to accommodate everyone at a much more decent cost. Travelers are also now staying longer than before, because of the affordability and comfort of these new alternatives. This means that they have more time to explore the destination, learn the culture, and really appreciate what it has to offer, instead of just a touch-and-go experience that was much more common in the past.

How have you managed to stay relevant in this industry?

We keep listening to our customers, and refining our product according to what they are looking for. We have to keep talking to various people in the value chain as well, so we know where to position ourselves, and how we can continue being a pioneer in this industry.

What are your future plans for Roomorama?

Our plan is to be THE platform that people think of when they are looking to book mid-range to high-end properties anywhere around the world.

If you could start all over again, would you change anything about your approach? If so, what?

We would have been more aggressive in all aspects of the business. I think when we started out, we second-guessed ourselves, our abilities, the market responsiveness… sometimes you just have to believe and take a leap of faith and not be afraid of rejection. We wish we had learned that faster.

What do you think about startups in Asia?

I think that the eco-system in Asia is becoming more vibrant. There are companies focused on creating value in Asia, and while scale and momentum may take longer to build than in the US, because of high fragmentation in this part of the world, we are seeing some global players emerge, that are inspiring a whole new crop of startups in this region.

What are some personal principles or personal values that guide you and your career?

Always remain humble, and always question what you are doing, to make sure you are focusing and moving in the right direction.

What is your definition of success?

Success is a moving target, and there are many measures of it, for different parts and different stages of life. I never want to put a hard definition on it, because on one hand, it can make you complacent, and on the other, it can depress you. I find it is wiser to always be seeking improvement and growth.

Why did you decide to become an entrepreneur?

I think entrepreneurs tend to be problem-solvers and the type to jump at opportunities. I don’t think we ever really planned on becoming entrepreneurs, but when we saw a gap that needed to be filled, and that we had a chance of creating something that people would actually use, we took the leap.

What do you think are the most important things entrepreneurs should keep in mind?

Always keep focused – on your product, on the goal
Remember that the road is always rougher than you think
Surround yourself with people who are better and smarter than you, to make up for the skills you lack

In your opinion, what are the keys to entrepreneurial success?

Always questioning what you are doing, and remaining humble.

Any parting words of wisdom for entrepreneurs out there?

Never lose your determination, tenacity, and your thick skin!

Connect:
Website: www.roomorama.com
Facebook Page: http://www.facebook.com/roomorama
Twitter: www.twitter.com/roomorama
Instagram: @roomorama

Entrepreneurship

Will Financial Liberalisation Trigger a Crisis in China?

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The People’s Republic of China (PRC) has been liberalizing its financial system for nearly 4 decades. While it now has a comprehensive financial system with a large number of financial institutions and large financial assets, its financial policies are still highly repressive. These repressive financial policies are now a major hindrance to the PRC’s economic growth.

The PRC is at the beginning of a new wave of financial liberalization that is necessary for supporting the country’s strong economic growth. The country’s leaders have already unveiled a comprehensive program of financial reform, which includes 11 specific reform measures in three broad areas: creating a level-playing field (such as allowing private banks and developing inclusive finance), freeing the market mechanism (such as reforming interest rate and exchange rate regimes and achieving capital account convertibility), and improving regulation.

But could financial liberalization lead to a major financial crisis in the PRC? What would be the consequences for financial stability as the PRC moves to further liberalize its financial system? If the PRC repeats the painful experiences of Mexico, Indonesia, and Thailand, then it might not be able to achieve its original goal of overcoming the middle-income trap.

International experiences of financial liberalization, especially those of middle-income economies, should offer important lessons for the PRC. In our new research, based on cross-country data analysis, we find that financial liberalization, in general, reduces, not increases, financial instability. This powerful conclusion is valid whether financial instability is measured by crisis occurrence or by fragility indicators, such as impaired loans and net charge-offs. The only exception is that financial liberalization does not appear to significantly lower the probability of systemic banking crises, although it does lower the risk indicators for banks. These results have higher statistical significance and are greater in magnitude for the middle-income group than for the entire sample.

The insignificant impact on banking crises, however, should be interpreted with caution. One of the possible explanations is that under the repressed financial regime, the government supports banks with an implicit or explicit blanket guarantee. This reduces the probability of an explicit banking crisis, although the banking risks may be even greater because of the moral hazard problem. In fact, government protection of banks could also increase the probability of a sovereign debt crisis or even a currency crisis before financial liberalization.

If financial liberalization significantly reduces the likelihood of financial crises, especially in middle-income economies, then why did some middle-income economies experience financial crises following liberalization? We further investigate whether the pace of liberalization, the supervisory structure, and the institutional environment matter for outcomes of financial liberalization.

We obtain three main findings. First, an excessively rapid pace of financial liberalization may increase financial risks. The net impact on financial instability depends on the relative importance of the “liberalization effect” and the “pace effect.” In essence, what the “pace effect” captures could simply be the prerequisite conditions and reform sequencing that are well discussed in the literature. Second, the quality of institutions, such as investor protection and law and order, also matter. International experiences indicate that investor protection can significantly reduce the probability of financial crises. Third, the central bank’s participation in financial regulation is helpful for reducing financial risks during financial liberalization. This is probably because central banks always play central roles in financial liberalization, especially in the liberalization of interest rates, exchange rates, and the capital account. If a central bank is responsible for financial regulation, its liberalization policies might be more cautious and prudent.

Our research findings offer important policy implications for the PRC. (1) Further financial liberalization is necessary not only for sustaining strong economic growth but also for containing or reducing financial risks. (2) Gradual reform may still work better than the “big bang” approach, and sequencing is very important for avoiding the painful financial volatilities that many other middle-income countries have seen. (3) The government should also focus more on improving the quality of other institutions, especially market discipline, to contain financial risks. (4) It is better for the central bank to participate in financial regulation. The new regulatory system should focus exclusively on financial stability and shift from regulating institutions toward regulating functions. It should also become relatively independent to increase accountability.

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About the Author 

This submitted article was written by  and  of Asia Pathways, the blog of The Asian Development Bank Institute was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in the Asia-Pacific region.

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Entrepreneurship

Women on Top in Tech – Chrissa McFarlane, Founder and CEO of Patientory

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(Women on Top in Tech is a series about Women Founders, CEOs, and Leaders in technology. It aims to amplify and bring to the fore diversity in leadership in technology.)

Chrissa McFarlane is the Founder and CEO of Patientory, a patient-centered enterprise solution on the blockchain to store, secure and access healthcare information in real-time. She is a leader and an entrepreneur with a passion for creating cutting-edge healthcare products that transform the face of healthcare delivery in the United States of America and abroad.

What makes you do what you do?
I am passionate about helping people, especially when it comes to their healthcare. This is my daily motivation for pushing forward in one of the most challenging industries to innovate.

How did you rise in the industry you are in?
Through my networks and maintaining a strong advisory board, I am able to make an impact.

Why did you take on this role/start this startup especially since this is perhaps a stretch or challenge for you (or viewed as one since you are not the usual leadership demographics)?
I took on the role and decided to start this startup primary to follow my passion and be an inspiration for other women who are seeking to start their own business.

Do you have a mentor that you look up to in your industries or did you look for one or how did that work?
I have multiple mentors. I met them through my networks.

How did you make a match if you did, and how did you end up being mentored by him/her?
Through introductions and after speaking with them I saw a character alignment that prompted me to ask them to by my mentor.

Now as a leader how do you spot, develop, keep, grow and support your talent?
Through one on one meetings, and team building.

Do you consciously or unconsciously support diversity and why?
I consciously support diversity because a diversity of thought breeds success in the workplace. It is important to have different lenses of thought to be represented. Our company is a representation of the people we serve.

What is your take on what it takes to be a great leader in your industry and as a general rule of thumb?
A great leader in healthcare is equipped to serve the people. Unlike many other industries, healthcare is centered around sustaining the health of the human being. You certainly need to encompass a passion for seeing individuals live and lead healthy lifestyles.

Advice for others?
In building emerging technology, education is always key to success.

Our first Inaugural Blockchain Healthcare Summit will take place on May 31st in Atlanta, GA where we will discuss the current state of blockchain projects and opportunities for the future.


If you’d like to get in touch with Chrissa McFarlane, please feel free to reach out to her on LinkedIn: https://www.linkedin.com/in/chrissamcfarlane/

To learn more about Patientory, please click here.

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