Oyo says this deal will help Oyo to be more accurate with pricing, leading to higher efficiencies and yield for its real estate owners

Oyo Hotels & Homes, a leading budget hotels aggregator in Asia, has acquired Danamica, a Copenhagen-based data science company, specialied in dynamic pricing.

While the transaction details remain undisclosed, a TechCrunch report has pegged the amount at US$10 million.  

This acquisition is in line with Oyo’s plans to grow its global vacation rentals business through strategic investments in technology products, processes, and people. 

Earlier in August, Oyo committed to investing €300M (US$328M) in the vacation homes business in Europe, with a particular 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. Additionally, Oyo and its real estate partners will benefit using data sciences for improved yield. 

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Maninder Gulati, Global Head, Oyo Vacation and Urban Homes, and Chief Strategy Officer, Oyo Hotels & Homes, said: “This will help us to be more accurate with pricing, leading to higher efficiencies and yield for its real estate owners and value for money for our millions of global guests.”

“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,” he added.

Danamica is a Machine Learning and business intelligence company specialising in pricing time-expiring inventory such as rental of vacation homes. Its technology makes it possible to dynamically set optimal prices for vacation home stays as supply/demand changes – to the benefit of both guests and owners. 

With the implementation of ML-enabled pricing and revenue management, Oyo’s customers will be able to book a vacation home at the best price.

Headquartered in Noida, Oyo has a significant presence in Southeast Asia. It entered the region in 2016 with Malaysia and has grown its presence to over 125 cities across Indonesia, the Philippines, Malaysia, and Vietnam. The company said it aims to add 2 million rooms under management in Southeast Asia by 2025. 

Recently, Oyo announced its plan to expand its presence in 100 cities in Indonesia by the end of this year. As part of this, the company also committed US$100 million over the next five years.

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