Pace, a London startup which leverages machine learning in a bid to maximise hotels’ revenues and occupancy, has closed a £2.5m Seed led by InterGlobe.
Seedcamp, Speedinvest and Amadeus Capital Partners also invested in the round.
Set up last year, Pace automates pricing so it responds to demand and price sensitivity.
The startup is currently working in closed beta with 20 properties across five markets, including Prague’s Emblem Hotel and the Teleport Hotels in Amsterdam and Hague.
Pace was co-founded by Jens Munch, John-Paul Clarke and Jason Pinto.
Munch, the CEO, said: “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. We’re excited to announce this investment, which lets us expand our science and engineering team and give hotels the solution they deserve.”
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Pace will use the money to advance its technology and to expand its commercial team.
Neena Gupta, executive director of Strategy at InterGlobe, explained the decision to invest in the company: “Businesses across the travel industry have been constantly seeking smarter technological solutions to enable robust price management. The talented team at Pace has demonstrated that a tech-enabled automated approach has the potential to revolutionise the industry. Pace will lead the way in transforming revenue management not only for the hospitality industry but also for other relevant industries”
Carlos Espinal, managing partner at Seedcamp, went on to note: “Waste in any industry is a bad thing, particularly in the travel industry where it involves many services that are interdependent and where customers end up footing the bill for poorly optimized travel and hospitality options.
“By backing Pace, we hope that the industry will have a new tool to take a step in the right direction and reduce the friction of over/underbooking and the negative impact it has to us all,” he concluded.
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