OYO acquires data science company Danamica
Budget hospitality chain OYO Hotels and Homes has acquired Copenhagen-based Danamica, a data science company with machine learning and business intelligence capabilities.
The acquisition will help OYO drive growth across all its brands OYO Homes, Belvilla and DanCenter, the company said in a statement.
OYO has not revealed the financial terms of the deal.
Danamica specialises in dynamic pricing. With the latest acquisition, OYO plans to further expand its ability to use pricing as a key differentiator for real estate owners and customers.
“We are delighted to announce our acquisition of Danamica that will help us be more accurate with pricing, leading to higher efficiencies and yield for our real estate owners and value for money for our millions of global guests, both everyday travelers and city dwellers, that choose an OYO Vacation Homes as their abode,” said Maninder Gulati, global head, OYO Vacation and Urban Homes, and chief strategy officer, OYO Hotels and Homes.
OYO claims its pricing, inventory allocation and revenue management are driven by a machine learning-based algorithm for prediction and dynamic pricing. The algorithm analyses 144,000 data points every hour and makes 60 million price changes every day with a prediction accuracy of 97%.
It also allows each hotel to drive maximum revenue per available room (RevPAR) based on its micro-location.
“Data sciences across pricing, AI, and imaging sciences have been a cornerstone of OYO’s proprietary revenue enhancement technology. It is also a huge missing piece in the way traditional vacation rentals industry is run,” Gulati said.
Earlier in August, OYO had committed to invest €300 million in the vacation homes business in Europe with a prime focus on strengthening the relationship with homeowners.
In August, it had acquired Las Vegas-based Hooters Casino Hotel to launch its operations in Las Vegas, the gambling capital of the world.
This marked the first such deal by the Gurugram-based hospitality unicorn where it had acquired a hotel property to launch its operation in the market.