Canadian travel tech company Plusgrade announced Tuesday that it will acquire Israeli startup UpStay, developer of a fully automated technology platform for hotel upgrades, and open an R&D center in the country.
As part of an acquisition deal worth tens of millions of dollars, Upstay, which employs 20 people, most of them based in a local R&D center, will move to new offices and hire 30 additional staff. The new office will be Plusgrade’s Israel R&D Center.
Founded in 2019 by CEO Tzafrir Blonder with Omry Litvak and Dor Krubiner, UpStay’s system uses AI algorithms to send data-driven, personalized special offers to hotel guests to upgrade their room before they arrive. or purchase additional add-ons. During your stay.
To date, the Tel Aviv-based startup has raised $3.5 million. Among the first investors is Journey Ventures, a travel tech investment venture jointly led by Israeli hotel chain Fattal Hotels Ltd. and Tel Aviv-based deep tech investment firm Spring Ventures Ltd.
“Today is an exciting day for Upstay,” Blonder said. “After four years of incredible growth and success, our ability to join forces with Plusgrade to further invest in our product offering and drive ancillary revenue for our partners through upselling of additional hotel rooms and services. We are excited to strengthen the
Founded in 2009 and headquartered in Montreal, with offices in New York and Singapore, Plusgrade says its platform has helped 200 customers, including global airlines, cruise lines and passenger rail companies, generate “billions of dollars.” It is said to create new revenue channels. For example, the platform offers an airline passenger a bid system for seat upgrades during his online check-in for a flight. We also offer services such as blocking adjacent seating areas on board for travelers interested in comfortable air travel.
With the acquisition of UpStay, the Canadian travel tech company says it is expanding its upgrade platform into the hotel industry for the first time.
Plusgrade CEO Ken Harris said: “The acquisition of UpStay is another step towards our vision and mission to be a global ancillary revenue engine.”
UpStay’s system allows hotels to offer personalized upgrades to guests for an additional fee. The platform connects to hotel systems and sends emails to guests who make a reservation with an offer to upgrade their room size, view, floor, or other improvements for an additional fee. According to UpStay, each guest can bid on what they believe to be a fair price for room and service upgrades. According to UpStay, hotel inventory is always on sale for the best possible price.
UpStay’s system is used by hundreds of hotels in 17 countries, including the Fattal hotel chain, 200 Leonardo hotels in Europe, the Intercontinental hotel chain, and hotel chains in Mexico and the United States.