PriceLabs, a provider of dynamic pricing and revenue management solutions for the short-term rental industry, announced a $30 million minority growth investment from Summit Partners. This funding will support its continued commitment to building revenue management solutions and fuelling global team growth.
Richie Khandelwal, Anurag Verma and Sana Hassan founded PriceLabs in 2014 to bring AI and analytical tools to small business owners and managers of vacation homes and short-term rentals. It currently powers over 150,000 listings across 100 countries.
“Pricing can be the biggest growth lever when running any business, particularly in the hospitality space. Here most businesses still use archaic methods and static pricing that can leave anywhere from 10 per cent to 40 per cent of revenue on the table,” said Khandelwal. “PriceLabs serves the needs of short-term rental operators, offering a highly configurable solution that allows operators to combine our AI and algorithms with their knowledge of the local market and property.”
PriceLabs’ automated dynamic pricing solution is designed to continuously analyse historical and forward-looking hyper-local data to sense changes in demand and recommend optimal daily pricing tailored to each property’s unique characteristics. The company’s comprehensive software provides users with data and tools to monitor and research local market conditions and adjust prices to suit the needs of the property and operations. Prices update automatically through direct integrations with over 70 property management software solutions, helping property owners efficiently manage their operations and maximise the profitability of their listings.
Consumer preference has continued to shift in favour of alternative accommodations across every demographic, which has led to rapid growth in the short-term rental industry and over 8 million unique listings on Airbnb and Vrbo alone. “We see PriceLabs as ideally positioned to serve this growing market with an intuitive, easily customisable and comprehensive solution designed to deliver ROI to owners and managers almost immediately,” said Colin Mistele, Managing Director at Summit Partners. He has joined the PriceLabs Board of Directors. “We believe this deeply experienced team has a significant opportunity to capitalise on a substantial unpenetrated market as they continue to develop and launch innovative products,” he added.