Event: 2021 Phocuswright Conference
HQ: Tel Aviv, Israel
Principal(s): Tzafrir Blonder, CEO; Jonathan Shemer, CTO; Dor Krubiner, Executive Chairman, Omry Litvak, Executive Board Member
Funding: $2.5 million
Product Description: UpStay is a post-booking yield optimization platform for hotels. Its algorithms constantly analyze the hotels’ inventory, including room categories, F&B, and other hotel facilities to determine an automated optimization plan and to launch targeted and personalized upselling offers to chosen segments of the upcoming guests to generate the optimized demand for such inventory. It also uses dynamic pricing, including its unique Bid-For-Upgrade system, to generate the needed conversion rates and optimize hotels’ performance.
Business Model: Revenue share. We offer hotels a win-win risk-free business model: no upfront or monthly fees, no hidden charges. We only take a percentage of the additional revenue we make for the hotels.
Competitors: Old-school upselling software – Roomdex, Oaky, Nor1
Competitive Edge: UpStay is the first fully-automated post-booking optimization technology for hotels. It uses AI algorithms to analyze hotels’ and guests’ data and to determine a pre-arrival upselling/cross-selling optimization plan that generates the exact demand to match the hotels’ distressed/unsold inventory.
Market Opportunity: Hospitality is a $550b industry with rapid growth. UpStay improves hotels’ RevPAR by 5% and their margins by up to 20%. UpStay TAM includes over 250,000 hotels and resorts and with a merely 5% market penetration, UpStay will generate an annual value of over $0.5 billion for hotels.
Early Customers: Fattal Hotels (Leonardo, NYX, Jurrys Inn), Palladium Group, Myconian Collection