PriceLabs, a provider of revenue management solutions, had raised $30 million from Summit Partners. Since its inception, this is its first equity funding.
The startup said it would use capital to expand its team and develop more products.
PriceLabs, a Chicago-based company founded in 2014, offers owners and managers of vacation homes and short-term rentals AI-driven analytics solutions.
It helps them automate and provide dynamic pricing for their properties across listings.
Property owners can continuously analyze historical and upcoming hyper-local data with PriceLabs’ software-based automatic dynamic pricing system to detect changes in demand and recommend the most appropriate daily pricing based on the particulars of each property.
Over 70 different property management software solutions are directly connected to the company’s software stack, which assists property owners in managing their businesses effectively.
“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,” Richie Khandelwal, cofounder of PriceLabs, said in a statement. “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,” Khandelwal added.
In more than 100 countries, PriceLabs powers over 150,000 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,” said Colin Mistele, managing director (MD) at Summit Partners. He will join the board of PriceLabs.
“We see PriceLabs as ideally positioned to serve this growing market with an intuitive, easily customizable and comprehensive solution designed to deliver RoI (return on investment) to owners and managers,” added Mistele.
