The buyout is part of OYO’s €300 million investment plan in its global vacation rentals business announced last month. Under this plan, it wants to invest in technology products, processes and people.
The Danamica’s buyout is aimed to help OYO drive its top-line growth by leveraging dynamic pricing across all its European brands namely OYO Home, Belvilla and DanCenter, which are among the many vacation rental players in this region.
Danamica’s specialised dynamic pricing algorithms, built on machine learning (ML) and business intelligence (BI) technologies will benefit OYO and its real estate partners’ business globally.
Probably, the dynamic pricing was the major technology piece missing in OYO’s overall technology armour, impacting its business transactions with partners and customers. And that’s been main reason, OYO acquired Danamica.
“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. We are glad to have found Danamica, which has built expertise in these areas,” said Maninder Gulati, Global Head – OYO Vacation and Urban Homes, & Chief Strategy Officer, OYO.
“Our acquisition of Danamica, a Europe based, machine learning and business intelligence company specialized in dynamic pricing 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,” added Gulati.
OYO’s hospitality and rental busines will gain enormously from Danamica’s dynamic pricing algorithms that provides logical and scientific recommendation; and are core to real-time accurate pricing and revenue improvement. Besides, the customers will also benefit from it with best pricing.
Copenhagen based Danamica is a brainchild of Mad Westberg and Rune Larsen.
“We are very pleased to announce that Danamica is now part of OYO Vacation Homes family. OYO and Danamica have a shared understanding of the importance and impact of AI and data science. Like OYO, we recognize the untapped potential in the vacation rental industry that can be fulfilled with a data-driven approach,”said Danamica’s founders.
“We are therefore confident that we have found the right home for us in OYO and are excited about the prospect of using our expertise in pricing and machine learning to further help OYO’s continued growth and success,” added Danamica’s Westberg and Larsen.
With Danamica’s buyout, OYO has further strengthened its pricing, inventory allocation and revenue management that leverages 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 daily globally with a 97% prediction accuracy rate. 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.