Serko

Transforming business travel with simplicity, a customer-centric approach and continuous R&D 

Navigating the labyrinth of business travel has traditionally been a complex and expensive endeavour for companies worldwide. Booking flights, accommodations, and car rentals, all while adhering to corporate policies, often resulted in a frustrating experience marked by inefficiencies. "To do it manually can require hours of back and forth on email. And it's really costly," explains Darrin Grafton, CEO of Serko, a company at the forefront of revolutionising the business travel landscape.

Serko’s origins date back to May 1993, when Grafton and co-founder Bob Shaw built the world's first Corporate Automated Booking System (CABS). "One of Bob's backgrounds was having early access to the internet in the U.K.; we had both worked together earlier, building software for travel management companies to do all their accounting and manage their green screen technology," Grafton recalls. They listened closely to corporate clients during RFPs and tenders, recognising that there was a significant problem to solve. "And so, we built the first booking system... It was the first time a corporate travel booking on the internet had been done," Grafton shares. 

From these beginnings, Serko has evolved into a tech powerhouse based on a concise and clear mission. "We're just trying to make quite a complex problem simple," says Grafton. This mission, though simple in articulation, has required substantial innovation and iteration. The company embeds corporate travel policies within its platform, making it easier for employees to comply with them while enjoying a seamless booking experience. "We just tried to solve the customer problem they had. We thought, if we built the framework of policy and used behaviour analytics, we could encourage employees to follow the policy and feel they're doing a good thing." 

This customer-centric approach, along with a deep commitment to innovation, is what sets Serko apart from others in the business travel space. However, putting it into practice meant finding a way to modernise legacy booking systems, which Darrin describes as “disparate systems built in the 1960s to ‘80s that hadn’t changed a lot”. Serko tackled the hotel booking side first, applying what Grafton calls “a modern retail approach” to how rooms were listed. It may seem obvious now, but before Serko, hotels didn’t show images of their rooms in the corporate booking tool when you were making a booking. The company then showcased this approach to airlines, demonstrating the benefits of using the same concept—for instance, to show business class travellers the amenities their fare offers. Serko’s way of working with airlines has meant it’s seen as a valued partner rather than a disruptor. Grafton highlights this shift: "Instead of working against the airlines, we decided to work with them... companies like Qantas and Air New Zealand started to see you more as someone they would want to work with." 

Serko’s dedication to continuous innovation is evident. Up to 80% of its early activities were focused on R&D, and the company is now embracing AI to further transform business travel. "The vision that I have is to help travel managers optimise policies… use data and insights to say to them, 'Hey, if you changed your policy this way, it would generate this benefit to your company,'" says Grafton. AI could also reduce traveller stress by making context-aware decisions. For example, Grafton explains that disruptions to a third of his flights were stressful because they were trips to attend customer events: "I wish they knew my priorities for the trip and did whatever it takes to just get me there." Integrating AI would enable Serko to manage disruptions with the traveller’s preferences in mind, prioritising presence over cost in this instance and suggesting alternatives.

Callaghan Innovation has played a pivotal role in Serko's journey, offering crucial support at various stages of their growth. "It really did make a huge difference. I don’t think we would be where we are today if it weren’t for the support of Callaghan," Grafton says of the agency. The financial and strategic backing from Callaghan Innovation allowed Serko to commercialise its products faster and compete with much larger companies. "Even today, their support is enabling us to build ground-breaking technology. And that’s what’s powering world-leading brands like Booking.com for Business," Grafton asserts. With over 640,000 registered customers worldwide and a total income that rose by 48% to $71.2m from FY23 to FY24, the collaboration is clearly helping propel Serko to new heights.

The company’s future ambitions are far-reaching and reflect its focus on cutting through complexity. "Our moonshot is really simple; we aim to have 20% of the world's business travellers using our platforms," Grafton states. This goal is part of a long-term strategy that spans 10 to 20 years, focusing on building a better platform that delivers value at every level. And for other companies looking to turn their ideas into global impact, Grafton’s advice is correspondingly simple and straightforward: 

“Put the effort in to create structure and robustness around your idea. Then, talk to Callaghan, take the time to look at the grants and support they offer and leverage them. Put the effort in place because you’ll get a great outcome.” 

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