The collaboration between ONDA, a leading hospitality tech company, and Impact AI, an innovative developer focused on artificial intelligence and big data solutions, is poised to revolutionize the field of hotel revenue management. By leveraging dynamic pricing functionalities that respond in real-time to market conditions, the partnership aims to introduce a cutting-edge revenue management system (RMS) specifically designed for the hotel and lodging sectors. The agreement was solidified through a memorandum of understanding (MOU) signed by ONDA’s CEO Oh Hyun-seok and Impact AI’s CEO Park Sung-hyuk. Both executives underscore the strategic importance of integrating AI and big data to optimize room pricing based on real-time factors such as supply and demand fluctuations. This collaboration marks a significant attempt to harness the potential of AI and big data, aiming to create a transformative impact on the hospitality industry’s revenue strategies.
Combining Expertise in Data and Technology
ONDA will bring its extensive domestic accommodation data and platform integration expertise into the collaboration, which will be crucial for developing a robust dynamic pricing system. This data repository, coupled with ONDA’s existing technological capabilities, sets the stage for a highly effective RM solution. On the other hand, Impact AI will contribute its advanced AI and big data technologies to the partnership. Established in 2022 as the first startup from KAIST Business School, Impact AI has a proven track record of addressing inefficiencies in various industries through innovative technological solutions. One of its notable products, the AI-based Ad-tech solution OASIS, exemplifies this by accurately forecasting future demand and optimizing advertising efficiency.
The converging assets and expertise of both companies aim to create a dynamic pricing system that adjusts room prices in real-time according to market factors like supply and demand. This dynamic pricing approach is projected to enhance price competitiveness and maximize profits for hotels. By integrating sophisticated algorithms and machine learning models, the system will continuously evaluate market conditions and make automated pricing adjustments to optimize revenue. This type of advanced pricing strategy not only ensures better profitability but also significantly improves operational efficiency, with projections estimating a boost of over 10% in these areas for hotels utilizing the system.
Transforming the Hospitality Sector
ONDA has been a pivotal force in driving digital transformation within the accommodation sector since its inception in 2016. Its range of products, including the Integrated Sales System (ONDAHUB) and the Room Management System (PMS), have fortified its position in the market. The collaboration with Impact AI is expected to further enhance ONDA’s revenue management capabilities, cementing its role as an industry leader in hotel technology solutions. The partnership underscores a growing trend in the global hotel industry towards automated room pricing using AI and big data solutions, a shift that promises to bring considerable enhancements in both profitability and operational efficiency for hotels.
Impact AI’s involvement brings an additional layer of technological sophistication to the table. By combining AI-driven data analysis with ONDA’s extensive market knowledge, the partnership aims to set a new benchmark for revenue management systems in the hotel industry. The dynamic pricing system will be able to process vast amounts of data in real-time, enabling hotels to respond swiftly to changing market conditions. This advanced capability ensures that hotels can remain competitive, especially during peak seasons or events that drastically affect room demand. By leading the development of such advanced RM systems, ONDA and Impact AI are setting the stage for a significant evolution in how the hospitality sector manages and maximizes its revenues.
Market Influence and Future Prospects
Since its inception in 2016, ONDA has been a key driver of digital transformation in the accommodation sector. Its suite of products, including the Integrated Sales System (ONDAHUB) and the Property Management System (PMS), has solidified its market standing. Teaming up with Impact AI is projected to further amplify ONDA’s revenue management expertise, reinforcing its status as a frontrunner in hotel technology solutions. This partnership highlights a trending shift in the global hotel industry toward automated room pricing powered by AI and big data solutions, which promises to enhance both profitability and operational efficiency for hotels.
Impact AI adds a sophisticated layer of technology, blending AI-driven analytics with ONDA’s market acumen. Together, they aim to redefine revenue management systems in the hotel industry. Their dynamic pricing model will analyze vast data sets in real-time, enabling quick responses to market changes. This functionality ensures hotels stay competitive, particularly during peak seasons or events impacting room demand. By spearheading the development of these advanced revenue management systems, ONDA and Impact AI are poised to revolutionize how the hospitality industry maximizes its revenues.
