PriceLabs, a dynamic pricing and revenue management solution for the short-term rental market, has announced a $30m minority growth investment from Summit Partners.
This investment is the first financing to PriceLabs and will help it bolster its revenue management solutions and fuel global team growth.
Founded in 2014, PriceLabs was created to bring AI and analytical tools to owners and managers of vacation homes and short-term rentals. Its idea stemmed from the co-founder Richie Khandelwal’s frustrations while managing personal rental property and the inability to efficiently adjust prices based on changes in demand.
The automated dynamic pricing solution continuously analyses historical and forward-looking hyper-local data to sense changes in demand and recommend optimal daily pricing tailored to each property’s unique characteristics.
It currently powers over 150,000 listings in over 100 countries.
Khandelwal said, “Pricing can be the single biggest growth lever when running any business, particularly in the hospitality space, where most businesses still use archaic methods and static pricing that can leave anywhere from 10 – 40% of revenue on the table.
“We purpose-built PriceLabs from the ground up to serve the needs of short-term rental operators, offering an easy-to-use and highly configurable solution that allows operators to combine our AI and algorithms with their own unique knowledge of the local market and property.”
Summit Partners recently led the $90m funding round of Halborn, a cybersecurity platform for traditional finance and blockchain-based companies.
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