Yuta Kuratate

Delta HQ's Business Direction

Introduction: Problem Recognition from On-Site Observation

Delta HQ's starting point was observing on-site hotel operations through live-in research in Niseko.

Initially, we were considering an OTA (online travel agency) business, but after seeing the operational reality on the ground — paper ledgers, manual Excel work, manual coordination between fragmented systems — we determined that the priority issue was "fragmentation of the reservation-to-operations infrastructure (around PMS)" and pivoted our direction.

The hospitality industry has significant structural problems with system fragmentation and legacy systems, and there is substantial room for improvement. This needs to change. That is Delta HQ's starting point.

The "Negative Spiral" Facing the Hospitality Industry

Japan's hospitality industry is currently facing serious structural challenges.

According to the Ministry of Health, Labour and Welfare's "2023 Survey on Employment Trends," the turnover rate for the accommodation and food service industry (combined regular and part-time) is 26.6%, far exceeding the all-industry average of 15.4%. Additionally, the Ministry's "Survey on Early Separation of New Graduates (March 2022 Graduates)" shows that the rate of university graduates leaving within three years of employment in the accommodation and food service industry is 55.4% — the highest level among all industries.

Meanwhile, demand is exploding.

  • According to JNTO (Japan National Tourism Organization), the number of international visitors to Japan in 2025 reached approximately 42.68 million (a 15.8% increase year-over-year), setting a new record
  • According to the Japan Tourism Agency, inbound tourist spending in 2025 (preliminary estimate) reached approximately 9.5 trillion yen

Moreover, the consumption structure has clearly shifted from shopping-centric to "accommodation, dining, and experiences."

In other words, demand keeps growing, but the supply side (workforce and operations) can't keep up. This is the industry's reality.

And at the root of this problem is system fragmentation. PMS (property management systems), site controllers, booking engines, accounting software — these are provided by separate vendors, fragmenting both data and operations. As a result, staff are consumed by "bridging work" between systems, losing the time they should be spending with guests.

System fragmentation → Increased manual work → Employee burnout → Turnover → Labor shortage → Declining service quality → Deteriorating guest experience This is the "negative spiral" that has taken root in the hospitality industry.

Delta HQ's Vision

The vision we at Delta HQ hold is this:

"Toward a world where everyone can travel comfortably" "A world where systems automate every task that doesn't need a human, so people can focus solely on hospitality"

Technology exists not to strip away humanity, but to restore it.

Back-office automation, centralized reservation management, data-driven decision-making — these are all means to create time for staff to engage with the guests in front of them. The essence of the accommodation business is "hospitality," and the guest experience itself is the value delivered. That's precisely why the systems behind the scenes must be solid for the front stage to shine.

Travelers, workers, and owners alike — everyone living happy, fulfilling lives. We believe that is the mission of hotel systems.

Three-Layer Roadmap: Evolving the "Property Operations OS" Step by Step

Delta HQ is not just a SaaS tool. As the "core system" for accommodation properties, we are expanding the business progressively across three layers.

Layer 1: All-in-One Operations SaaS

The first layer is to digitalize and centralize accommodation property operations. PMS, channel management, booking engine, accounting integration — we unify these into a single platform, eliminating fragmentation between systems.

The hospitality industry has been noted for lagging behind other industries in digitalization. Building this foundation first is the starting point for everything.

Layer 2: Ecosystem Development

The second layer is revitalizing regional businesses with hotels as the hub. Accommodation properties can serve as hubs for regional economies. By building an ecosystem connecting surrounding activities, restaurants, and transportation, we create a virtuous cycle that revitalizes regional economies through tourism, making both visitors and residents happier.

Layer 3: AI Agent Transformation

The third layer is solving labor shortages through AI. Inquiry handling, report generation, rate optimization — AI Agents take over "tasks that don't need humans."

What's important here is clarifying AI's role. "Creating" is for AI; "deciding" and "taking responsibility" are for humans. In an era where human value concentrates upstream (Why / What) and downstream (quality assurance), the ability to ask the right questions must be preserved. If lost, we become the ones used by AI.

OEM

The PMS market in the hospitality industry is a domain with extremely high barriers to entry and migration hurdles. The stability required for 24/7/365 operation, complex operations that differ by property, and switching costs that make it difficult to change once implemented. That's why existing players can't pursue aggressive development, and the industry's overall metabolism is poor.

Delta HQ turns this structure to our advantage. We build a firm position in a high-barrier domain, generate network effects, and use the collected data to expand into upper layers.

Another key strategy is the OEM model. By providing "proprietary software" optimized for each hotel chain, we enable each property to enhance competitiveness with their unique brand and services. Just as Hoshino Resorts moved to develop their own PMS due to limitations of existing systems (no customization, high development costs, on-premise), larger hotel chains increasingly demand "systems optimized for their operations." Delta HQ is the product that meets that demand.

Design Philosophy: Cloud-Native, API-First, Modular

Delta HQ's technical design philosophy is built on three pillars.

  • Cloud-native: Unlike on-premise legacy PMS systems, running on the cloud minimizes upfront investment while always providing access to the latest features.
  • API-first: Designed with external system integration as a premise, enabling seamless connection with OTAs, accounting software, IoT devices, and any other service.
  • Modular: By providing functionality in modular units, flexible customization is possible according to each property's scale and needs. From small vacation rentals to major chains, the architecture has the extensibility to serve any accommodation property.

Closing: Beyond Efficiency

The value accommodation businesses deliver lies in hospitality. However, the current reality is that fragmented systems and manual work consume on-site time, compressing the room for improvement in service quality and profitability.

Delta HQ creates a state where on-site teams can focus on guest service by integrating and automating the operational foundation. This is the prerequisite for simultaneously achieving improved experience value, containment of labor, recruitment, and training costs, and implementation of data-driven decision-making (revenue optimization, etc.).

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