Oyo Hotels & Homes, a rental hotel network, acquired Danamica, a Copenhagen-based data science venture, with machine learning and business intelligence capabilities, specialised in dynamic pricing. This acquisition is in proportion to OYO's continued commitment to its global vacation rentals business through strategic investments in technology products, processes, and people.
Furthermore, this acquisition comes a month after OYO committed to investing around €300 million (US$328.94 million) in the vacation homes business in Europe, with focus on bolstering the relationship with homeowners and allowing them with the resources, such as technology investments, required to deliver elegant hospitality experiences.
The acquisition of Danamica will provide OYO the opportunities to drive top-line growth by leveraging its dynamic pricing across all of its brands, including OYO Home, Belvilla and DanCenter, these all are already at the forefront of vacation rental pricing in Europe. Also, the company and its real estate partners worldwide will benefit by utilizing data sciences for improved yield. Beginning with Europe, Danamica's technology innovations will offer the advantage to OYO's global vacation homes business.
According to the reports, the deployment of machine learning-powered pricing and revenue management offer customers to book a vacation home at the best price. OYO's pricing, inventory allocation, and revenue management are driven by an ML-based algorithm for prediction and dynamic pricing.
Though the terms of the acquisition were not unveiled, Oyo stated in a statement that the acquisition of Danamica that has machine learning and business intelligence capabilities with specialisation in dynamic pricing will be leveraged across its vacation rental brands.
On this Danamica acquisition, Global Head of OYO Vacation and Urban Homes and Chief Strategy Officer of OYO Hotels & Homes, Maninder Gulati said, "The acquisition of Danamica 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 travellers and city dwellers, that choose an OYO Vacation Homes as their abode."
On the other side, Danamica founders Mads Westberg and Rune Larsen pointed out that OYO and Danamica have a shared understanding of the importance and impact of AI and data science. Like OYO, Danamica recognises the untapped potential in the vacation rental industry that can be fulfilled with a data-driven approach.
Much similar to airlines, and ride-hailing companies, OYO now introduced dynamic pricing in the hospitality industry to build a level-playing ground even for the independent or small hoteliers or homeowners. The latest acquisition also comes about four months after when OYO announced its acquisition of Amsterdam-based vacation rental company @Leisure from German media group Axel Springer for a reported €370 million, which was later rebranded Oyo Vacation Homes.
