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DAYUSE: the European game changer that creates a disruptive value-adding exploitation model for Hotels.

Periodic Reporting for period 2 - DAYUSE (DAYUSE: the European game changer that creates a disruptive value-adding exploitation model for Hotels.)

Okres sprawozdawczy: 2019-07-01 do 2020-06-30

"Created in late 2010, dayuse.com is the innovative world leader in online reservation for the emerging ""day use"" hotel room segment in a typical ""Blue Ocean"" strategy. It provides an answer to this key question ""Why should I book a hotel room for a full overnight price when I only need it for a few hours?""
DAYUSE has the ambition to leverage on its leading commercial position in the ""day use"" segment to shake completely the Hospitality Industry by imposing gradually and globally a new scalable industry standard based on an hourly service/rate, 24 hours a day, similarly to industries like car renting.
To consumers (guests) this brings a new range of offers (business travelers, commuters, tourists...) combined with a fairer value to the use of assets thanks to the hourly pricing. To hotels it brings greater efficiency by generating incremental revenues from existing assets and facilities.

Concretely, the company targets to provide to hotels a DAYUSE Proprietary Management System (PMS) called DMS delivered through SaaS with a ground-breaking pricing ""per transaction"" mode.
The PMS market is estimated at $1.5 billion in 2016 and expected to grow to $2.0 billion in 2024. DAYUSE targets its gradual smooth adoption, first as a complementary tool to existing PMS and finally as a full substitute.
DAYUSE will then extend its reach to the whole Hospitality Industry while integrating other distributors. The company wants to be the European game changer in an industry where North American players prevail.

With this project DAYUSE has engaged in preparing and fine-tuning the IT tools for the industrialization (“DAYUSE Global Connect”) while running pilots in different countries (Europe, US, Asia) with different hotel types (Independent, Chains) to be prepared for the challenges of the Go-to-Market execution in Phase 3.

The Phase 2 project is structured in 4 steps over 24 months:
- step 1: Develop the Extranet (WP2)
- step 2: Develop the DMS (WP3)
- step 3: Test and improve the solution with pilot hotels (WP4)
- step 4: Prepare the Go-to-market strategy (WP5)


Conclusion of the action

During the first half, the project progressed well on track, during the second half however it was strongly impacted by the COVID-19 crisis. It has affected every sector across the globe, and the hotel industry which we operate in is among the hardest hit. This major and unexpected change to our ecosystem created both opportunities and challenges at the same time for our project. Opportunities - faced with historically low occupancy rates due to the absence of tourism, hotels are looking for new models to make up for lost revenues and they now clearly see the opportunity of both the commercial and the technical innovations offered by DAYUSE. Challenges - faced with short term financial difficulties hotels and deploying drastic cost reduction plans, this is undeniably a very unfavorable timing to commercialise a new piece of software.
The Go-to-Market strategy and corresponding project plan were therefore adapted to the context and Phase 3 postponed as a result. It was decided that rather than offering a full range paying solution to our partner hotels, it would be more efficient to offer a free solution with a smaller functional scope for now, focus on creating value by bringing dayuse business and develop our brand an notoriety, and at a later stage when the hotel industry conditions have improved deliver additional functionalities and switch to a full range paying solution.

As of today 70% of our hotel partners have adopted our Day Management System, and we are receiving a large number of inbound requests from independent hotels as well as hotel chains. Although the functional scope of the product was reduced and the commercial phase had to be postponed, we consider this Phase 2 as a success and we will be ready to deploy Phase 3 when time comes."
Overview of results

The project plan was adapted to take into account the challenges and opportunities arised during the last 24 months.
A the end of this project we completed the 4 planned steps and achieved:

- A robust technical structure and scalable data model;
- Connections with distributor partners and a connection with a group CRS (Central Reservation System) ;
- A Day Management System tested and improved with our hotel partners;
- Efficient tools and processes for international hotel onboarding and account management.

As of today 70% of our hotel partners have adopted our Day Management System. Although the functional scope of the product was reduced and the commercial phase had to be postponed, we consider this Phase 2 as a success and we will be ready to deploy Phase 3 when time comes.
With this project DAYUSE targets the whole Hospitality Industry including independent hotels and hotels chains with a Unique Selling Proposition of “creating more value through a Night & Day hourly exploitation of all their assets” through an innovative DMS SaaS.

With the DMS, DAYUSE will displace the traditional Value Creation in the PMS Industry from software publishing to the provision of a smartservice: the company intends to bring the ultimate tools to the Hotel manager to create more value in the exploitation of its assets with an Night & Day hourly based principle allowing a full management flexibility and a groundbreaking pricing per transaction as a variable cost for the hotel.

At the end of the action

At of of today 70% of our hotel partners have adopted our Day Management System, and we are receiving a large number of inbound requests from independent hotels as well as hotel chains. We have seen a number of recent publications in the general and specialised press concerning the alternative we offer, the industry is searching for new models and ideas and our offer is one. These are very encouraging signs of interest which confirm the true potential of our innovation. However the duration of the sanitary crisis is unknown and the next steps of our project will be be dependent on how deep the hotel industry is hit and when it picks up.
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