According to a TechCrunch report, OYO paid about $10 million to acquire the Danish company.
Founded in 2016, Danamica is a machine learning and business intelligence company specialising in pricing time-expiring inventory such as rental of vacation homes. The firm’s algorithm analyzes 144,000 data points every hour and makes 60 million price changes every day with a prediction accuracy of 97 per cent, OYO said in a statement.
The 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, it added. With Danamica, OYO will now be able to further expand its ability to use pricing as a key differentiator for real estate owners and customers.
Maninder Gulati, Global Head, OYO Vacation and Urban Homes, & Chief Strategy Officer, said, “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.”
“Danamica has built a valuable IP that analyses many years of data and pricing trends and provides logical and scientific recommendations, which will help us scale our vacation and urban home business across Europe and other parts of the world,” he added.
With the implementation of ML-enabled pricing and revenue management, customers will be able to book a vacation home at the best price, the company said.
Earlier in August, the company had committed to invest €300 million ($328 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, it said. 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 home business.
Since the acquisition of Amsterdam-based holiday rental company Leisure in May, close to 2.8 million holidaymakers from over 118 countries have used Oyo Vacation Homes, the company claimed in a statement last month.
OYO’s portfolio currently comprises more than 23,000 hotels and 1,25,000 vacation homes, with over one million rooms. The company also recently announced an investment of $300 million to expand its footprint in the U.S.