HotelTonight, the San Francisco-based startup with a mobile-first approach towards last-minute hotel bookings, has made its first acquisition.
The target was PrimaTable, another startup with a similar mantra for last-minute reservations. Focused on the restaurant reservation spaces in New York City and San Francisco, PrimaTable developed a sophisticated platform to forecast reservation demand and quantify how much that demand is worth.
Much like HotelTonight with last-minute accommodations in major metropolitan areas across the United States and United Kingdom, the idea was to create connections between restaurants with last-second space and consumers that wanted a last-minute reservation at a top-end restaurant.
Jared Simon, chief operating officer and co-founder of HotelTonight, said via telephone on Friday that his team is "over the moon about what we're picking up here," explaining that PrimaTable's yield management platform that makes this kind of precision doesn't exist anywhere else.
"Prior to smartphones, there wasn't a need for real-time yield management systems," Simon said, adding that with the advent of smartphones, "we're starting to uncover this latent demand among consumers to get what you want when you want it."
Even though this primarily comes off as a technology acquisition, it's a talent one too. All three employees at PrimaTable have already joined the HotelTonight team and will form the "cornerstone" of the company's data analytics team.
Simon remarked that PrimaTable was "staffed with people with tremendous analytics backgrounds." Both of PrimaTable's co-founders, Jamie Davidson and Colin Zima, were previously engineers at Google, and Simon emphasized their ability to be able to take "reams of data and convert it into actual intelligence" in order to create real-time revenue management systems.
It's important to note that this does not mean that HotelTonight is adding restaurant reservations to its repertoire -- at least not yet. Simon replied that there are no immediate plans to take on restaurants, but he did leave the door open for the possibility by saying that the addition of this yield management expertise allows the business to optimize for other services down the line.
Financial details of the agreement were not disclosed, but the deal has already closed. When asked about when the merger was completed, Simon quipped with a laugh, "We don't waste any time."