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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - DAYUSE (DAYUSE: the European game changer that creates a disruptive value-adding exploitation model for Hotels.)

Teaser

Summary

\"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 (â€œDAYUSE Global Connectâ€) 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)

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Work performed

The main objectives for this first 12 months period were to develop the Extranet (WP2) and lay the foundation for the development of the DMS (WP3) while interacting with pilot partners (WP4).

During this reporting period, our first priority was to build a robust infrastructure and enhance the data model (WP2 - 2.1 to 2.3) to create the framework for the subsequent Extranet and DMS developments.

We than developed Hotel Extranet features (WP2 - 2.4 and 2.5) with the objective of providing to our hotel partners a platform to manage directly and in real time their inventory and pricing.

In parallel we started the search for â€œpilotâ€ partners, independent hotels, hotel chains and distributors (WP3). Although our project was at a very early stage several pilots emerged from this search, a positive indication that our initiative is valued by the industry.

A the end of this reporting period we have achieved:

- A robust technical structure and scalable data model;
- An Extranet for hotel partners with 83% take up rate for the French and UK markets;
- Active connections with 3 distributor partners ;
- A connection with a group CRS (Central Reservation System) and 20 pilot hotels ;
- A first step towards the new billing module.

The project plan was adapted to take into account the challenges and opportunities that arised during the first 12 months but overall the project is on track.

Final results

With this project DAYUSE targets the whole Hospitality Industry including independent hotels and hotels chains with a Unique Selling Proposition of â€œcreating more value through a Night & Day hourly exploitation of all their assetsâ€ 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.

These results and impacts described in the project DoA remain the same at the end of the first reporting period.

At the end of this period, the high take rate observed with the Extranet in France and UK, and the interest of several actors - distributors and major hotel chain- to become pilot partners are very encouraging signs of interest from the industry for the potential impact of our innovation.