Hospitality industry veterans, technology experts and entrepreneurs Brian Dass and Yannis Moati pitch Hotels by Day, a business that allows travelers to book a hotel room during the day, in episode 817. They started the business in early 2015 to allow hotels to sell “uncommitted inventory” to travelers who wanted a room for a few hours to refresh themselves.
Consumers simply download the Hotels by Day app to their smart phone and they can book a hotel room for a morning, mid-day, or afternoon stay. It’s a win/win for travelers and hotel owners. Travelers can access a room for a short period without the expense or commitment of an overnight stay and hotels increase revenue by selling more room space.
They currently have deals with hotels in Chicago, Los Angeles, Miami, New York and Fort Lauderdale, Fla., that are available for six to eight hours, during the day only. Travelers can also get access to a hotel pool or spa for a much smaller fee than an overnight stay. The service is aimed at business people who need to refresh for a few hours after a long flight and people who need a “home base” for a “daycation.”
So far, the business is well received by hotel operators and consumers. The company was profitable from day one. They likely need a Shark’s help expanding their geographical base. Will a Shark book a room with this business?
Hotels by Day Shark Tank Recap
Brian and Yannis enter seeking $750,000 for 10% of Hotels by Day. They start off explaining the business and Mark thinks they sound like a Saturday Night Live skit. Robert immediately gets to the numbers and they tell him a six hour “day stay” is $90. Kevin wants to know why other hotel booking sites don’t just offer this as an added feature. Yannis says the technology doesn’t exist right now.
As Yannis and Brian explain their “channel management” system, the Sharks aren’t getting it. They are asking more questions to each other than to Brian and Yannis. Chris wants to know how their technology makes their system work as opposed to existing technology. Yannis and Brian’s answers confuse and frustrate him.
To date, they’ve done 6500 booking with revenues of $127,000. Yannis admits it’s low, but sees it as a good starting point. Chris still doesn’t get it. Yannis explains they are not competing with hotels, but rather the booking software that’s out there today.
Chris thinks they did a terrible job explaining themselves and goes out. Mark thinks their numbers are too “tiny,” he’s out too. Robert likes the idea, but thinks the big hotel chains would duplicate what they do, he’s out. Lri thinks there are too many missing pieces, she’s out. Kevin thinks they made it impossible to invest, he’s the last Shark out. RESULT: NO DEAL
Hotels by Day Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The company remains in business and now has over 450 locations. While they are growing, they are growing at the tiny pace Mark was concerned about.
In 2020, the global Covid-19 pandemic crushed their business. Bookings were down a whopping 82%. It turned out to be a blessing in disguise. As people worked from home, they got a little stir crazy – they wanted a quiet space. Many turned to this company and others (there are three other competitors to Hotels by Day and some hotel chains offer their own version of this service) to work in a hotel room instead of home.
By May, 2021, they were only down 30% due to the “work from hotel” trend. With over 1500 participating hotels, they are the largest player in this niche. In June, 2022, the company has gone international with participating hotels in major European cities. As of August, 2023, annual revenue is around $5 million.
Posts About Hotels by Day on Shark Tank Blog
Hotels by Day Company Information
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