Startup that helps hotels perfect their deals raises US$3.7M Series A
The money will be used to expand across Asia, trying to tap into a market of tens of thousands of independent hoteliers
ZUZU, a startup that helps independent hoteliers with yield management, announced today it has raised a US$3.7 Series A led by Wavemaker Partners.
Other investors included Golden Gate Ventures, Convergence Ventures, Alpha JWC Ventures, Access Ventures and LINE Ventures.
The money will be used for expansion across Asia, and based on recent hires it is reasonable to predict they are targetting Australia and Thailand. They already have operations in Indonesia, Singapore and Taiwan.
ZUZU helps independent hoteliers with yield management — a pricing strategy that aims to adjust the cost of rooms by predicting consumer behaviour. In hotels, the obvious example of yield management is raising prices when a big event is in town or selling rooms at discounts if the hotel has empty accommodations.
The startup has built a hotel operating management software that it claims can increase revenue by 30 per cent.
It differentiates itself by offering both a tech solution and the operations. By taking care of both the software and the solutions, the goal is to allow hotels outsource their yield management so they can focus on issues like hospitality.
“ZUZU is now the only complete outsourced yield management solution for independent hotels. Rather than dropping a piece of software on a hotel and expecting them to figure it out for themselves, we provide both the software and the service,” said ZUZU Co-founder Dan Lynn.
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The company said there are around 300,000 independent hoteliers across the world and that 10,000 of them are in Thailand. Malaysia and Australia have 5,000 each. ZUZU claimed only 1 in 10 of these companies use a yield management software, which is the gap ZUZ is hoping to fill.
ZUZu was founded in 2016 and raised US$2 million in 2017.
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