Just over a year ago, we celebrated passing over $1 million in bookings priced by our software. It had taken us almost a year to get from $0 to $1. We created the first ever dynamic pricing software for Airbnbs and vacation rentals when we launched in 2014 in San Francisco.
It was a huge feat because no one had figured out how to dynamically price individual vacation rental units before. All previous attempts had maximized revenue across a portfolio of units, making this hotel-centric revenue management useless for individual vacation rental owners, who make up over half of all listings worldwide.
Being first is tough. When you create a new product category, it means you need to do all of the educating, all of the learning, all of the innovation.
And so one year in, we were proud of our growth. We hit $1 million in bookings, we launched in 7 domestic and 3 international markets, and had 500 listings using our software. We had a growing base of incredibly enthusiastic users who we still count today as some of our most loyal.
Today, we’re excited to announce that in our second year of existence, we’ve gone from $1 million in bookings to over $100 million, growing faster than Airbnb in its first years. We are live in over 300 global markets with the majority of our revenue coming from international. And we’re profitable.
Our small team has built a product used by over 40,000 listings worldwide, nearly 2% of Airbnb’s total listings. In any major global market, you can’t walk more than 4 blocks without passing a rental priced by Beyond Pricing.
And in some markets like Tokyo, our pricing is so dominant that we actually move the market.
But we’re just getting started. The sophistication in pricing that airlines and hotels enjoy is still not being employed by the majority of Airbnb and vacation rental owners and property managers. In places like Copenhagen, which we just launched recently, people barely change their price for anything except weekends despite huge variations in demand.
Despite our huge growth, we’ve still got a long ways to go before all $100 billion of the worldwide vacation rental market is using something like Beyond Pricing. As part of our effort to make Beyond Pricing available to everyone, no matter where they list or what software they use to manage their vacation rental, we’ve opened up our API to allow anyone to incorporate big data-driven predictive dynamic pricing into their system. Some of our biggest property managers are already building Beyond Pricing into their custom systems, while other innovators like Orbirental have skyrocketed ahead of others by making dynamic pricing powered by Beyond Pricing available directly in their property management system.
Finally, we’ve partnered with some of the largest property management software companies to bring our dynamic pricing engine to their users around the world. As we rapidly expand our software partners this year, we’ll make Beyond Pricing ubiquitous and help take us to $1 billion in bookings priced by next year. If you’re interested in becoming a partner, email us at: firstname.lastname@example.org.
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