Earlier this August the company had committed to invest €300 million in the vacation homes business in Europe, with a special focus on strengthening technology.
Softbank-backed Oyo has acquired Copenhagen-based data science company Danamica for an undisclosed amount.
Earlier this August the company had committed to invest €300 million in the vacation homes business in Europe, with a special focus on strengthening technology.With the acquisition of Danamica, Oyo looks to drive growth by leveraging dynamic pricing across all its brands - Oyo Home, Belvilla and DanCenter.
Additionally, Oyo and its real estate partners around the world will benefit using data sciences for improved yield.
“We are delighted to announce our acquisition of Danamica, a Europe based, machine learning and business intelligence company specialized in dynamic pricing, 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.
With the implementation of machine learning-enabled pricing and revenue management, customers will be able to book a vacation home at the best price.
"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. 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,” said Mads Westberg and Rune Larsen, founders, Danamica.
Similar to airlines, and ride-sharing companies, Oyo has dynamic pricing in the hospitality industry to create a level-playing ground even for an independent, small hotelier or homeowner.
Its pricing, inventory allocation, and revenue management are driven by a machine learning-based algorithm for prediction. The algorithm analyses 144,000 data points every hour and makes 60 million price changes every day globally with a prediction accuracy of 97%.
Oyo last announced an investment from US-based home-renting company Airbnb in April. Earlier, it had raised over $1 billion from investors that included SoftBank, Didi Chuxing and ride-hailing firm Grab.
Oyo's founder and group chief executive Ritesh Agarwal also recently signed a $2-billion primary and secondary management investment round to buy back some of the company's shares.