Hotels have sophisticated pricing engines to tell them how much their rooms should cost. Airbnb hosts don’t, or at least didn’t until Beyond Pricing. The startup’s tool plugs into your Airbnb listing, and uses signals about future demand to automatically reprice your room on the fly. Beyond Pricing will charge a 1% fee of people’s Airbnb rate, but can help hosts make 10% to 40% more off their rentals.
Since launching in early 2014, Beyond Pricing has already entered 26 cities and is controlling $1 million worth of Airbnb bookings per week. But now with a $1.5 million seed led by Resolute Ventures, Beyond Pricing has the capital to expand to more major Airbnb markets and build integrations with other rental services like Homeaway and Booking.com.
Originally, the startup was called Beyond Stays and offered property management for Airbnb hosts But CEO David Kelso tells me as competition from services like Pillow and Guesthop crowded in, “we recognized that our core competency was not logistics and hospitality, but building great software to help them make more from their homes.”
To figure out what to charge for a room, Beyond Pricing analyzes vacation rental sites, hotels, weather, airline arrivals, and other signals.
Now Beyond Pricing partners with its former property management competitors like Onefinestay, MyVRHost, Proprly, and Lokappart. There are other pricing engines popping up, including Pricelabs and Smart Host, which could drive down its margin. Beyond Pricing hopes that its rapid expansion and the new $1.5 million from Social Leverage, Structure Capital, and Nas’ QueensBridge Venture Partners will give it an edge.
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Kelso concludes “We saw so many hosts and small property managers doing everything right when it came to the hospitality side of the business – creating an amazing experience for their guests – but feeling helpless when it came to the revenue side of hosting.” With Beyond Pricing, hosts with a single room can price just smart as hotels with 200.
