SAN FRANCISCO — Beyond Pricing, which offers a dynamic pricing solution for the fast-growing short term rental industry, has raised $42.5 million in Series A funding led by Bessemer Venture Partners.
Beyond Pricing’s automated dynamic pricing software – the first of its kind in the industry – was created to empower independent property owners, managers and developers. While these customers manage a majority of the short term rentals on the market, they are underserved by the growing proptech industry, and are increasingly fighting off competition in the form of VC-backed vacation rental platforms and hospitality conglomerates that are entering the fast-growing space.
Beyond Pricing gives these customers access to tools previously only available to large hospitality companies, and leverages over 10 billion proprietary data points to make the most accurate pricing recommendations in the industry. Using Beyond Pricing, these customers are able to competitively price their properties, regardless of the platform they list on, and see up to a 40% increase in revenue.
“Our customers make up the majority of the short term rental industry, but don’t have the resources to invest in their own software, and have traditionally relied on analog ways of pricing their properties. We were the first company to create software specifically designed for the needs of these customers, giving them access to industry-leading technology for the first time,” said Beyond Pricing co-founder & CEO Ian McHenry. “Our mission is to put the power back in the hands of these customers and help them maximize both revenue and occupancy while maintaining a competitive edge as this industry continues to mature. This funding will allow us to deepen our relationship with our customers, and offer new tools to help them maintain and grow their businesses.”
Beyond Pricing currently dynamically prices 150,000+ listings in more than 7,000 cities worldwide, and has priced more than $2 billion in bookings. The company, which last raised post-seed funding in 2016, plans to use the infusion of capital to maintain their leadership in the space and develop an expanded suite of products to further support their core customer base. The company also plans to expand its presence in Europe, starting with their office in Portugal.
“At Bessemer, we love investing in founders that are transforming industries that have been historically underserved by software. While hotels have fully embraced technology and dynamic pricing, the short term rental industry is still underpenetrated. We were impressed with the Beyond Pricing team’s ability to consistently deliver revenue growth for their customers and think they are positioned to become the market leader in short term rental software. We’re excited about partnering with them in the next chapter of the company’s growth,” said Brian Feinstein, Partner at Bessemer Venture Partners.
“Our company has been managing vacation rentals in Killington, Vermont for over 10 years. We had been looking for opportunities to increase revenue for our owners and when a large national manager recently entered our market we saw we needed to find the tools to help us remain competitive right away,” said Fred Cercena from GetAway Vacations in Killington, VT. “As soon as we started using Beyond Pricing, the tides began to shift and we ultimately were able to increase our overall revenue by over 20%, while staying competitive with the bigger players in the market.”