If you’re already renting out a spare room, a home or an apartment using Airbnb you’re going to go gaga over Beyond Pricing, a service that can quickly pick the perfect listing price for you. If you haven’t already jumped on the Airbnb bandwagon, maybe Beyond Pricing’s awesomeness will convince you it’s time to dip your feet in (and perhaps make you feel more confident that you’ll get a good return on your investment). Who wouldn’t want to make more money?
Ian McHenry, Beyond Pricing’s co-founder and President, summarizes what makes the startup so remarkable for people who list properties on Airbnb like this:
Beyond Pricing is the first ever data-driven dynamic pricing and revenue management engine for the short-term and vacation rental market. The major movement in dynamic pricing and revenue management in the accommodation space is predicting demand based on future indicators rather than historical booking curves. We are the first to do that in our industry. In the hotel industry, companies like Duetto are using interesting factors to predict future demand. But they still focus on optimizing prices across a portfolio of rooms instead of a single unit. We are bringing software that is even more sophisticated than what most hotels use and making it simple enough for individuals and small property managers. We’re at the cutting edge of the consumerization of enterprise software.
Beyond Pricing’s rapid growth and momentum is evident in light of the fact that it is already handling over $1 million in bookings—weekly. That is partly due to the growing network of top short-term rental property managers like MyVRHost, Guesthop, Proprly, and Lokappart and next-generation hospitality brands like Onefinestay who have already Beyond Pricing customers. McHenry tells me that Beyond Pricing is actually powering the pricing of the majority of this new crop of property managers.
And here’s the big kicker: customers tell the Beyond Pricing team “time and time again” that after they have signed up, they quickly receive their first booking at the highest price ever—often 40% or more. Additionally, customers often receive enough to cover the cost of an entire year of Beyond Pricing in a single booking. Still other customers, particularly those that join in the off-season for travel in their city, ecstatically report that their nights are filled with bookings where previously their place sat empty. McHenry says that giving people that near-instant gratification and that boost in income is incredible.
The things I’ve mentioned so far in this article are all big benefits, but there’s one small benefit that Beyond Pricing’s customers suddenly realize: their calendar on Airbnb is always updated (Beyond Pricing takes care of this every night, automatically). This is a big deal, though, because Airbnb uses this to emphasize and rank listings. Just this one feature helps people get more bookings because they show up higher in search results.
You can tell a startup is on to something big when the investments start rolling in and Beyond Pricing already counts Resolute Ventures, Social Leverage, Nas’s Queensbridge Ventures, and Structure Capital as supporters with combined funding totaling $1.5 million. Beyond Pricing is putting this new capital to work supporting expanding to the rest of the world’s top Airbnb and vacation rental markets. They will also be adding integrations for other major vacation rental channels, such as HomeAway and Booking.com, to help their hosts maximize revenue.