The Genesis of ByHours

Embarking on their journey in 2012, Christian Rodríguez and Guillermo Gaspart transformed a visionary idea into reality, birthing ByHours. The inception of ByHours was fueled by a clear gap in the hotel industry: the lack of flexibility in booking options.

Recognizing the potential to cater to transient travelers, those in need of short rest stops, or professionals seeking a few hours of quiet work time, the founders pioneered the concept of microstays. This revolutionary model broke away from the traditional overnight hotel stay, introducing bookings for slots of 3, 6, or 24 hours.

The initial phase was marked by intense brainstorming, meticulous planning, and relentless pursuit of investors who saw the potential in their unique proposition. The founders’ pitch was compelling: ByHours promised not just a new revenue stream for hotels but also tapped into an unexplored segment of customers seeking short-term accommodation solutions.

The early adopters of the ByHours model were hotels in Barcelona, a city known for its innovation and tourism-friendly atmosphere. These partnerships were crucial, as they provided the real-world testing ground for refining the ByHours service. Feedback from these early experiences was invaluable, guiding further enhancements to both the technology and the customer experience.

Navigating the initial challenges, they gradually expanded its network, forging partnerships with hotels beyond Barcelona. The concept started resonating with a broader audience, capturing the attention of travelers who valued flexibility and efficiency.

The Mechanics of ByHours Microstays

The ByHours model is a pioneering innovation in the hospitality industry, fundamentally transforming how hotel rooms are booked and utilized. Central to the model is the concept of microstays, a novel idea allowing customers to book hotel rooms for short blocks of time. This flexibility is revolutionary, contrasting sharply with the traditional model that typically requires overnight stays or rigid check-in and check-out times. Their system is designed with the user in mind, providing a platform that is intuitive, easy to navigate, and tailored to the needs of guests seeking brief hotel stays.

ByHours has developed a robust platform that facilitates these flexible booking options. It ensures seamless user experiences, from searching for available hotels to completing a booking. Real-time availability, transparent pricing, and immediate booking confirmation are core features, supported by a back-end system that efficiently manages inventory and integrates smoothly with hotel management systems.

The benefits of the ByHours model extend beyond just the consumer. For hotels, this concept opens up a new revenue stream, allowing them to maximize the utilization of their rooms. Traditionally, hotels may experience periods of low occupancy, especially during off-peak hours. ByHours enables these establishments to monetize otherwise vacant rooms, offering an innovative solution to improve occupancy rates and overall profitability.

For travelers, the advantages are manifold. The flexibility to book a room for a few hours caters to a variety of needs – whether it’s a place to rest during a long layover, a spot to freshen up before a business meeting, or a quiet space to relax and recharge during a city tour. This model particularly resonates with business travelers, transit passengers, and day-trippers, providing them with a cost-effective solution that aligns perfectly with their itinerary.

ByHours’ Momentous Adaptation To COVID

During the COVID-19 pandemic, ByHours demonstrated exceptional adaptability and innovation in responding to the unprecedented challenges faced by the hospitality industry. ByHours, known for its microstay hotel booking platform, pivoted its services to meet the changing needs of both hotels and consumers, ensuring safety, flexibility, and continued operations.

Adapting to New Market Realities:

With the onset of the pandemic, the immediate challenge was the drastic reduction in travel, directly affecting hotel occupancy rates. ByHours responded by adjusting its core offerings to cater to the new market demands, focusing on local stays and safe environments for guests. They recognized the potential shift towards staycations and workspaces as people sought alternatives to traditional office environments and safe getaways within their own cities.

BYHOURS Direct Initiative:

Innovatively, ByHours launched BYHOURS Direct, a strategic B2B solution enabling hotels to offer microstays directly from their websites. This tool was particularly relevant during the pandemic as it allowed hotels to tap into local demand, providing flexible room usage options for customers seeking a safe change of scenery or a temporary workspace. The service empowered hotels to maintain revenue streams at a time when the global travel industry was at a standstill, offering a lifeline to maintain operations and keep staff employed.

Support for Essential Services:

Recognizing its role in the broader community, ByHours also focused on supporting essential workers. They provided accessible accommodation options for healthcare professionals, emergency responders, and other frontline workers, offering them spaces to rest or isolate safely, close to their workplaces. This initiative not only served the community but also showcased the adaptability of their business model to serve urgent societal needs.

Strategic Partnerships and Collaborations:

ByHours leveraged strategic partnerships to expand its offerings and reach during the pandemic. Collaborating with healthcare institutions, government bodies, and local businesses, they provided essential accommodation solutions tailored to the unique circumstances of the pandemic, demonstrating flexibility and a commitment to societal well-being.

Their innovative responses to the COVID-19 pandemic showcased the company’s agility, resilience, and commitment to safety, community support, and business continuity. By adapting its business model, launching new initiatives like BYHOURS Direct, and prioritizing health and safety, ByHours has positioned itself as a forward-thinking leader in the hospitality industry.

Cash Infusions, Stakes, and Revenue Of Byhours

ByHours, an innovative player in the hospitality sector, has demonstrated significant growth and investor confidence through its successful rounds of funding. Their financial journey showcases a strategic pattern of attracting investment, which has fueled its expansion and solidified its position in the market.

Early Stage and Seed Funding:

The company’s financial trajectory began in July 2013, when it secured a seed funding of €600K. This initial investment was contributed by Caixa Capital Risc, the venture capital arm of La Caixa, and Cabiedes Partners, renowned for backing innovative startups. This capital infusion was pivotal, enabling them to refine its platform and begin its market penetration. (Byhours | Crunchbase)

Subsequent Funding Rounds:

In April 2014, ByHours accelerated its growth with a substantial €2.6 million funding round, supported by Spanish investors. This investment was crucial for scaling up operations, enhancing the technological infrastructure, and expanding the team to support its growing customer base. The momentum continued, and in August 2016, they secured an additional €1.5 million from European funds. This round of funding underscored the confidence European investors had in ByHours’ business model and its potential to disrupt the traditional hotel booking industry. In November 2017, the company announced a significant boost with a funding round of €3 million. This investment came from a mix of new international investors and existing backers, illustrating a strong vote of confidence in ByHours’ continued growth and its innovative microstay concept.

Expansion and Growth Funding:

The most substantial investment came in January 2020, when ByHours closed a pivotal €8 million funding round. This capital was earmarked to propel the company’s growth in its established markets in Europe, Latin America, and the Middle East and to facilitate its strategic entry into the United States. This funding round was a testament to the scalability of the ByHours model and the broad appeal of its flexible hotel booking solutions.

ByHours has more than 300,000 users, generating over €20 million in turnover.  The funds have likely been instrumental in expanding ByHours’ market reach, enhancing its platform capabilities, and increasing its operational efficiency. The strategic investments also suggest that ByHours has been successful in demonstrating a sustainable and profitable business model, attracting ongoing investor support and paving the way for future revenue growth.

The Triumphs Of Byhours

The trajectory of ByHours in the hospitality and technology sectors is marked by numerous accolades and recognitions, reflecting its innovative approach and significant impact on the industry. These awards underline the company’s commitment to excellence, innovation, and customer satisfaction, showcasing its status as a leader in the microstay hotel booking niche.

Initial Recognition and Momentum:

ByHours’ groundbreaking concept quickly garnered attention, earning the title of “Best Startup of the Year” in Spain at the 2012 Ecommerce Awards. This prestigious accolade was a testament to the company’s innovative business model, its potential to disrupt the traditional hospitality market, and its capability to offer something unique and valuable to both hotels and consumers. Winning this award not only provided early validation but also positioned ByHours as a significant player in Spain’s startup ecosystem, boosting its visibility and credibility early in its journey.

Continued Excellence in Innovation:

Further cementing its reputation, ByHours received the eAwards in 2014 for the “Best App of the Year” in Spain.  The company also clinched the first prize in the travel and tourism web shop category, which recognized ByHours for its outstanding online platform that seamlessly connects travelers with hotels, offering customizable booking options that had not been seen before in the industry.

Recognition for Business and Productivity Impact:

In 2017, ByHours was lauded with the Overall Awards for the “Best Business & Productivity App of 2017.” This award signified the app’s exceptional utility and effectiveness in serving business travelers and professionals, providing them with the flexibility to book hotel rooms for short durations, thereby catering to their hectic schedules and unpredictable travel requirements.

Strategic Partnerships and Market Validation:

The endorsement by Huawei and El Pais, ranking ByHours as the 2nd Best APP in the #Startmeapp initiative, further validated the company’s market relevance and its appeal to a broad audience. This recognition from prominent industry players signified a strong endorsement of ByHours’ technological innovation, user-friendly design, and the practicality of its service.

The series of awards and recognitions received by ByHours not only celebrate its past achievements but also underscore the company’s ongoing commitment to innovation, quality, and customer-centricity. These accolades reflect the industry’s acknowledgment of ByHours as a pioneering force, continually pushing the boundaries of what’s possible in the hospitality sector, and setting new benchmarks for others to follow. 

Lessons For Aspiring Entrepreneurs : Byhours’ Journey

The journey of ByHours offers valuable lessons for aspiring entrepreneurs, particularly those looking to innovate within the hospitality industry or any sector. The company’s path from a novel concept to an internationally recognized brand provides key insights into successful startup strategies:

Embrace Innovative Solutions

ByHours stood out because it offered something unique: microstays. This concept didn’t just challenge the status quo; it created a new market within the hospitality industry. Lesson: Look for gaps in existing markets and dare to think differently. Innovation is not just about technology; it’s about how you can change consumer behavior or enhance their experiences.

Start Small, Think Big

Initially focusing on their local market in Barcelona, ByHours managed to perfect its model before scaling globally. Lesson: Master your business model locally or in a niche market before expanding. Understand the intricacies of your operation, refine your product, and ensure a strong foundation before aiming for larger markets.

Adaptability is Key

Their response to the COVID-19 pandemic is a prime example of adaptability. They quickly pivoted their services to meet the changing needs of their customers and the limitations imposed on the travel industry. Lesson: Stay flexible and be prepared to pivot your strategy in response to external changes or new information. The ability to adapt is crucial for navigating the unpredictable waters of entrepreneurship.

Leverage Technology

The success of ByHours is also attributed to its effective use of technology, providing a platform that’s user-friendly and meets the modern consumer’s expectations for convenience and efficiency. Lesson: Invest in technology that enhances the customer experience and streamlines your operations. It’s not just about having an online presence but offering a seamless, intuitive service that resonates with users.

Build Strategic Partnerships

Collaborations with hotels and the introduction of BYHOURS Direct are strategic moves that expanded their service offerings and market reach. Lesson: Don’t go it alone; look for partnership opportunities that can accelerate your growth, expand your capabilities, and offer mutual benefits.

Prioritize Customer Needs

Their success is largely due to its customer-centric approach, focusing on flexibility, convenience, and a personalized booking experience. Lesson: Understand your customers deeply and remain committed to solving their problems or enhancing their experiences, even as your business grows and evolves.

Resilience in the Face of Challenges

The company’s journey wasn’t without challenges, from initial funding to adapting to a global pandemic. Lesson: Entrepreneurship is a marathon, not a sprint. Prepare for highs and lows, and stay resilient. Your ability to endure and keep pushing forward will often be the difference between success and failure.

Incorporating these lessons from their journey can guide aspiring entrepreneurs in navigating the complexities of starting and growing a successful business, especially in industries ripe for disruption.

Conclusion : Wrapping Up ByHours’ Time-Transforming Tale

ByHours has truly revolutionized the hotel industry by introducing the innovative concept of microstays, allowing travelers the flexibility to book rooms for short periods. This pioneering approach has not only provided a solution to the rigid check-in and check-out schedules but also opened new revenue avenues for hotels, transforming how the hospitality industry operates. Their journey from a small startup in Barcelona to a prominent player in the global market underscores the power of innovation, strategic growth, and adaptability, especially in response to the unforeseen challenges posed by the COVID-19 pandemic.

The story of ByHours is a testament to the entrepreneurial spirit, showing that with the right blend of innovation, resilience, and customer focus, it’s possible to create a successful and sustainable business in today’s fast-evolving market. This narrative serves as an inspiring blueprint for aspiring entrepreneurs, offering valuable lessons on seizing market opportunities, adapting to change, and staying true to a customer-centric approach.

Embrace the challenge to think differently, to not only dream big but also act on those dreams with conviction and adaptability. Let ByHours inspire you to transform your groundbreaking ideas into reality, push beyond conventional boundaries, and shape the future of your chosen industry. Whether you are in the planning stages of your startup or scaling your existing business, remember the power of innovation, adaptability, and unwavering commitment to your vision.

For those looking to delve deeper into the world of innovative business models and successful startups, we recommend exploring our other articles. One such piece covers TBO, a technology-driven platform that has transformed the travel booking experience by integrating advanced tech solutions to streamline operations for travel agents and suppliers. Their strategic growth and technological innovations provide key insights into how leveraging technology can revolutionize traditional industries.

Another inspiring story is that of Voye Homes, a company that has redefined the homestay experience by offering unique, personalized lodging options that cater to the modern traveler’s desire for authenticity and comfort. Their focus on sustainable tourism and community engagement highlights the importance of aligning business goals with environmental and social responsibility.