Funding to support continued team expansion and product development to support growing demand for innovative, easy-to-use dynamic pricing solutions for the short-term rental industry
PriceLabs, a leading provider of dynamic pricing and revenue management solutions for the short-term rental industry, today announced a $30 million minority growth investment from Summit Partners. This funding represents the first financing for the profitable business and will support PriceLabs’ continued commitment to building leading revenue management solutions and fuel global team growth.
“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.”
PriceLabs was founded in 2014 to bring sophisticated AI and analytical tools to owners and managers of vacation homes and short-term rentals. The idea was born from co-founder Richie Khandelwal’s frustrations while managing personal rental property and the inability to efficiently adjust prices based on changes in demand. Teaming up with friends Anurag Verma and Sana Hassan, the group built a solution designed to address the similar challenges faced by the thousands of small business owners operating in the short-term rental market.
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Today, PriceLabs powers over 150,000 listings in more than 100 countries. The company has been growing steadily since its founding, with an offering that has resonated with vacation rental businesses of all sizes, from single-property owners to large property managers. Recently, PriceLabs won SaaSBoomi’s 2021 Bootstrapped Startup of the Year award after having grown nearly 3x in 2021.
“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,” said Richie Khandelwal. “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.”
PriceLabs’ automated dynamic pricing solution is designed to continuously analyze 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 maximize the profitability of their listings.
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“Our product democratizes powerful tools that, historically, have only been available to large hospitality businesses,” said Sana Hassan, co-founder of PriceLabs. “From an individual host seasonally renting their apartment in Paris to a multi-thousand unit vacation rental manager in Florida, we’ve built a solution that is easy to use, affordable, and integrates seamlessly with the software they’ve already adopted.”
“Consumer preference has continued to shift in favor 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 customizable and comprehensive solution designed to deliver ROI to owners and managers almost immediately,” said Colin Mistele, Managing Director at Summit Partners, who has joined the PriceLabs Board of Directors. “We believe this deeply experienced team has a significant opportunity to capitalize on a substantial unpenetrated market as they continue to develop and launch innovative products.”
“At PriceLabs, we believe every business in the accommodation space should have access to data-driven pricing and associated capabilities. We’ve been at the forefront of innovation – from building a pricing solution that can be used worldwide to building an industry-first minimum stay recommendation engine,” said Anurag Verma, co-founder of PriceLabs. “With the support and growth-oriented resources that Summit offers, we are excited to continue our mission of delivering innovation to the short-term rental market and accelerate our global hiring.”