Hotel tech startup Pace has raised £2.5 million led by InterGlobe with participation from Seedcamp, Speedinvest, and Amadeus Capital Partners.
The machine learning-based platform is used for managing hotel room prices and occupancy, and automates pricing in response to demand and price sensitivity based on real-time market intelligence.
According to the London-based company, it will automatically adjust hotel pricing at least 500,000 times year to keep up with demand and will price rooms at the optimum figure. It’s currently operating in a closed beta with 20 hotels. Its target customers are smaller independent and boutique hotels.
The company’s cofounders said that these dynamic pricing practices, typically used in aviation, can be applied to the hotel sector to boost revenue.
“Static and inefficient pricing has held hotels back for too long. Drawing on research from finance and aerospace, we want to raise the bar for revenue management and help hotels sell every room at the optimum price,” said Jens Munch, CEO.
The new funds will be invested in growing the engineering and commercial teams to serve more hotels.