PriceLabs, a revenue management tool for the short-term rental industry, has landed a $30 million minority growth investment from Summit Partners.
The capital is the first financing for Chicago-based PriceLabs, which claims it grew nearly 3X in 2021 and is a profitable business.
Founded in 2014, PriceLabs provides dynamic pricing and revenue management solutions to short-term rental owners and managers. The software uses artificial intelligence and algorithms to help operators manage pricing and stay restrictions and increase revenues.
PriceLabs integrates with more than 70 property management systems and channels, including Airbnb and Vrbo. Its tools power more than 150,000 listings in more than 100 countries.
“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 to 40% of revenue on the table,” says PriceLabs co-founder Richie Khandelwal.
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“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.”
Co-founder Sana Hassan adds that PriceLabs’ product helps democratize tools that have historically been used by larger hospitality businesses. “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,” Hassan says.
With the funding, the company plans to add new hires globally and invest in product development.