Beyond Pricing, the vacation rental industry’s largest provider of revenue management tools, announced today that it has raised $42.5 million to execute on a long-term strategy to provide a fully integrated solution for property managers to manage revenue and optimize demand across sales and marketing channels, and to expand its sales efforts in Europe, Australia and Asia. The Series A Round was led by Bessemer Venture Partners and follows early stage seed rounds totaling $3.5 million in 2016. According to Beyond Pricing founder and CEO Ian McHenry, the company has been operating at break-even, has proven the model in the United States, and is now primed to expand both its geographical footprint and depth of product.
“We’ve proven our model in the US, but we are just at the tip of the iceberg in Europe, as there are twice as many vacation rentals in Europe as there are in the US,” said McHenry. “We also have plans to grow in Australia and Asia, and are looking to become more integrated in the way we manage revenue across channels—including distribution and website platforms—in a more automated way that pulls all levers that contribute to demand.”
McHenry also said the company is not looking at major acquisitions at this time, but is instead interested in building out the product “in a holistic manner to help property managers drive more demand and overall revenue.”
As part of its growth strategy, Beyond Pricing has established an engineering office in Portugal and will be building sales and marketing hubs in London and Barcelona.
“We would love to build more data partnerships,” McHenry added. “Having more data sources that we can inject in an automated way—whether aggregated, anonymized source data or website and demand data—helps us create better pricing recommendations [for property managers].”
According to the company’s release about the funding, “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.