Over the years, Shark Tank has hosted many apps. But have you ever wondered what happened to apps like the fixed parking ticket app? Or the flag photo printing app? Hotels By Day is another innovative app designed for booking hotel rooms for a few hours rather than overnight that was pitched on “Shark Tank” Season 8 by Yannis Moati and Brian Dass.
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The founders presented Hotels by Day as a concept for travelers needing a temporary “daycation” space, offering flexibility for business travelers with layovers, people seeking a private workspace, or even those needing a quick rest between meetings. Inspired by the growing demand for short-stay options in the hotel industry, Moati and Dass designed the app to allow guests to book rooms in premium hotels at a discounted rate. “Sharks, our company is reinventing the hotel stay,” the app’s Chief Technology Officer, Brian Dass, said during the introduction, as seen on YouTube. The pair entered the “Shark Tank” looking for $750,000 in exchange for a 10% equity stake, emphasizing the win-win potential for both hotels and customers by monetizing empty rooms during the day, according to the Shark Tank Blog.
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What happened on the show
During their pitch, the founders quickly caught the Sharks’ attention, though they did not quite have the reaction they were looking for. Mark Cuban, before he announced that he was leaving the show, humorously compared their pitch to a skit, joking: “Why does this feel like a ‘Saturday Night Live’ skit?” Robert Herjavec immediately questioned the pricing structure, learning that a six-hour “day stay” would average around $90. Kevin O’Leary expressed the most skepticism, “Why wouldn’t other sites that already exist in a really cluttered, competitive space simply add this feature?” O’Leary asked.
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The app’s CEO, Yannis Moati, proceeded to explain that hotels use a 30-year-old system that can’t handle day bookings. “The central reservation system does not take in day bookings,” Moati insisted to the skeptical sharks. The Sharks ultimately weren’t buying it. None invested, feeling the concept was underdeveloped or could be replaced by bigger hotel booking platforms adding the feature to their existing systems.
Success following the show
Despite the lack of investment, Hotels By Day’s appearance on “Shark Tank” seemingly generated a lot of visibility. Following the appearance on “Shark Tank,” Hotels By Day experienced a boost in user interest and app downloads. The company expanded its partnerships, eventually working with over 450 hotels in major U.S. cities, including New York, Los Angeles, and Miami. However, the COVID-19 pandemic posed a significant challenge causing an 82% drop in bookings during 2020.
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As remote work surged, some customers began using Hotels By Day to book a quiet workspace, leading to a partial recovery. By 2021, bookings had rebounded, and the company expanded internationally, establishing partnerships with hotels in Europe and banking a reported estimated annual revenue of over $4 million. Shark Tank Blog reports,” As of August 2023,