2023 Year in Review
Ukio is no longer a startup.
It is a realization the founders and employees have come to as we bouldered through 2023. Not only were we growing, we were growing fast!
In summary, we welcomed over 4,500 guests from 3,710+ bookings, more than doubling the previous year. This translated to 229,000 nights and generated us €25 million in revenue. Taking into account seasonal lows in certain cities, we maintained a 93% average occupancy rate throughout the year, a tremendous feat that sits above the industry standard of 87%.
On the supply side, we added 480 apartments, bringing our year-end total to 920. This included 15 buildings where Ukio manages all properties.
With operations on a larger scale, getting to know our guests, partners, and landlords continued to be a top priority. Whether it was through events, reviews or customer interviews, we continued to hear stories of empowerment and inspiration from people looking to explore life in new destinations. This is a true testament to Ukio’s mission to let people live where they want and to provide them with that feeling of “home.”
Here are some key moments that contributed to Ukio’s success in 2023.
Expansion to Paris
After three years dominating the Iberian Peninsula, it was time to plant our roots in other parts of Europe, beginning with the launch of operations in Paris. As one of the busiest hubs in Europe and driven by the combined housing needs of business travelers, tourists, and students, it made sense as our next destination.
We started the year with only five apartments but quickly multiplied that tenfold. True to forecasts, Paris proved to be a strong market where we achieved a 90% average occupancy for the year and with revenue margins consistently above €3,000, the highest across all cities.
With the upcoming Paris Olympic Games in 2024, we see travel and demand for housing in the city only increasing, offering us a great opportunity to build strong brand awareness.
Building B2B
Although we had grown organically through individual travelers, we began to see an increasing trend of relocation agencies and corporate accounts contacting us. Alongside the fact that bookings for business-related travel grew over 200% year-on-year, it was a clear signal that a dedicated B2B sales team was needed to capture this increasing demand.
From a team of three at the beginning of the year, we ended 2023 with a team of ten: a Head of B2B Sales and dedicated account executives and BDRs for each market. We created clear value propositions, accelerated partner prospecting, and solidified relations through partner events.
Through their work, we closed over 350 partnerships with relocation agencies, production companies, corporations, and other work groups, and ended 2023 with 32% of total bookings coming from the B2B network. In 2024, we aim to increase this to 50%.
New Tech Developments
A vital element of our business growth has been the development of a Property Management System. The product is focused on our own internal use for now and will change the way we manage our apartments and the booking process for speed and efficiency.
The product is divided into three parts:
- Apartment Management: A single source of truth for all details pertaining to our properties. From apartment onboarding to design, this will serve as a data repository for all things related to our assets.
- Booking Management: Improving the user experience on our website for direct bookings, including subsequent actions like identity confirmation and stay extensions.
- Pricing and Payment: Optimizing the way we deal with price setting, price changes, payment processing, and more. Through this development, we aim to be more transparent with customers over the prices and charges they see.
Today, we may not consider ourselves a pure proptech company. But the software we are building can one day be a tool for any property operator.
Operations Team Restructure
Another sign that we were growing in number of apartments and guests was the need to re-think how our Operations team operated. In November, we restructured one single team into three sub-teams:
- Home Operations: The team responsible for getting apartments guest-ready alongside the Design team. They manage all renovations and design work.
- Guest Operations: This team manages the maintenance and cleaning of our apartments, ensuring that everything in-home runs smoothly.
- Guest Experience: A team dedicated solely to guest communications. They ensure that any queries, complaints, and needs are responded to in a timely manner and pass information on to other relevant departments.
With this new organizational structure, we aim to truly provide a 5-star experience to our customers through exceptional service.
Leadership Hires
When we raised our Series A in November 2022, the need came to professionalize how we were running teams. We needed experienced leaders to come in and take our ways of working to the next level.
We accomplished that by hiring VPs for the Sales and Supply functions and appointing the former Onboarding Lead to VP of Operations. Alongside our founders, VP of Design, VP of Engineering, and Chief of Staff, they comprise Ukio’s current executive team.
As we take on 2024, this is a great opportunity to give appreciation to all the stakeholders that have contributed to Ukio’s success.
To all employees who work tirelessly and with determination. They truly exemplify Ukio’s core values and live them day-to-day.
To our business partners and guests who continue to give life to our vision to be the world’s most trusted housing brand.
And finally, to our 800+ landlords who have placed their trust in us. This year, we will mark an important milestone by reaching 1,000 apartments and this would only be possible with their support.
Ukio is definitely not a startup anymore. And that just makes the journey all the more exciting.
