Hotelmize, an Israeli travel tech startup using AI to optimise hotel pricing and booking, has raised a Series B round from Alibaba Entrepreneurs Fund in Hong Kong and Tel-Aviv based Brilliance Ventures. The company also announced a new APAC headquarters in Hong Kong, which will serve as a gateway for expansion into the region.
Hotelmize’s AI-based technology is based on investment strategies in global capital markets, designed to generate more profit for travel companies.
Basically, the system monitors fluctuations in hotel room prices, from the placing of a reservation through to the vacation date, and trades the rooms the same way that algorithms trade stock. Room prices change dynamically, similar to options or warrants, and also come with expiry dates.
In a press release, the company claims it has handled over $2 billion in reservations and created over $100 million in value for the tourism industry.
“In the coming years, we will see travel industry players transform themselves from ‘commercial enterprises’ into ‘technology enterprises’. The demand for advanced data-driven intelligent solutions is already growing at a rapid pace,” said Dor Krubiner, Hotelmize CEO.
Founded in 2016 by Krubiner, Omry Litvak and Guy Levitan, the Israeli company employs over 20 people in its Tel Aviv headquarters, and has four more sales offices in London, Bangkok, Buenos Aires, and Mallorca. The founders raised a €3.8 million round last year. The exact amount of this Series B was not disclosed at investors’ request.