OYO Acquires Data Science Company Specializing in Dynamic Pricing via Machine Learning and BI
OYO Hotels & Homes announced that it has acquired Danamica, a Copenhagen-based data science company, with machine learning and business intelligence capabilities, specialized in dynamic pricing. This acquisition is in line with OYO’s continued commitment to the company’s global vacation rentals business through strategic investments in technology products, processes, and people. Earlier in August, the company has committed to invest €300 million in the vacation homes business in Europe, with a special focus on strengthening the relationship with homeowners and enabling them with the resources, including technology investments, required to deliver chic hospitality experiences. With the acquisition of Danamica, OYO will be able to drive top-line growth by leveraging dynamic pricing across all its brands - OYO Home, Belvilla and DanCenter, all of them already at the forefront of vacation rental pricing in Europe. Additionally, OYO and its real estate partners around the world will benefit using data sciences for improved yield. Starting with Europe, Danamica’s technology innovations will benefit OYO’s global vacation homes business.
According to OYO, the acquisition will help it be more accurate in pricing, leading to higher efficiencies and yield for its real estate owners and value for money for its millions of global guests, both everyday travelers and city dwellers, that choose an OYO Vacation Homes as their abode. 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.
With the implementation of ML-enabled pricing and revenue management, customers will be able to book a vacation home at the best price.
Similar to airlines, and ride-sharing companies, OYO has introduced dynamic pricing in the hospitality industry to create a level-playing ground even for an independent or small hotelier or homeowner. OYO’s pricing, inventory allocation, and revenue management are driven by a machine learning-based algorithm for prediction and dynamic pricing. The algorithm analyzes 144,000 data points every hour and makes 60 million price changes every day globally with a prediction accuracy of 97%. It allows each asset to drive max RevPAR based on its micro-location. It allows pricing to adjust dynamically to supply and demand. In peak times pricing adjusts to deliver high RevPAR, in low times, it also goes down to still allow for maximum customers to experience the product while increasing overall yield for owners. It is a boon for customers and core to the success of our business model worldwide, across businesses.