business

Online Tool for Finding the Perfect Price for Your Airbnb Listing

When listing their vacation home on a service like Airbnb, hosts are often uncertain about how much to charge guests. Beyond Pricing, which just raised $42 million, is a tool that seeks to eliminate this mystery and maximize profit.
"We're focused on making the individual property owner or property manager more money," Ian McHenry, co-founder and CEO of Beyond Pricing, told Cheddar Monday.
McHenry says that, while platforms like Airbnb have similar pricing tools built-in, it doesn't have the person listing the property in its best interest and will push them to offer it at a lower price.
"The online travel agencies, while they might have their own tools, they're mainly focused on gaining market share between one another," McHenry said.
Beyond Pricing works by gathering data from multiple OTAs to determine the best price and takes a 1 percent cut of the booking.
"We look at billions of data points … and we're just trying to make sense of those," McHenry said. "We're looking at seasonality, day of the week, major events."
While Beyond Pricing's concept is new to the short-term rental space, McHenry, who spent a large part of his career in the airline industry, said third-party pricing tools have been the norm for flight and hotel bookings for decades.
The company's $42 million fresh injection of funding is a dramatic step above raises of $1.5 million and $2 million in recent years. When asked about an exit strategy, McHenry sees both an acquisition or an IPO as plausible options.
"We think we're on a path to over $100 million in [revenue] within the next three to four years, given where we're at," McHenry said. "That's enough to take us public."
Beyond Pricing, which now handles more than 150,000 listings, has grown rapidly thanks to the notion that the best interest of the host is paramount.
"We're not just trying to get you booked," McHenry said. "We're trying to get you booked at the right price."
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