Alibaba is a Chinese multinational technology company specializing in e-commerce and retail. With a market capitalization of US$506 billion, it is the largest e-commerce retailer in China.
Alibaba has taken note of Hotelmize’s innovation and success and led the Series B round of funding, adding to the US$5 million raised in previous rounds.
The Hotelmize founders are looking forward to using the new capital to extend their data-driven solutions into new markets and help more travel companies protect their profit margins and stay resilient during these unprecedented times.
Hotelmize employs a team of 20 deep tech, travel and finance experts and has offices in South America, Europe, Asia, and the Middle East.
Hotelmize, nominated as one of the most promising startups of 2020 by Phocuswright, has developed a unique profit solution for travel businesses using AI algorithms based on the latest stock market trading technology.
Hotelmize’s revolutionary approach to profit optimization harnesses big data and machine learning in order to predict price movements. The software integrates with OTAs, tour operators, and wholesalers’ booking systems to track the price fluctuations of hotel bookings and then automatically re-book at the optimal price point, unlocking profits of more than 30% for its clients.
Last year, the technology was applied to 280,000 bookings which resulted in a total saving of $15 million for Hotelmize clients.
To date, Hotelmize has handled over $2b worth of reservations and generated more than $100m of extra profit for its customers, who include some of the leaders of the global tourism industry.
“Being endorsed by Alibaba in this way is a very important seal of approval for us. Our focus now is on expanding our operations throughout Asia and helping travel operators stay resilient and protect their profitability during these difficult times. In the coming years, we will see travel industry players transforming themselves from ‘commercial enterprises’ into ‘technology enterprises.’ The demand for advanced data-driven intelligent solutions is already growingDor Krubiner, CEO of Hotelmize
Hotel booking is an intensely competitive arena, and travel sellers are looking for new ways to gain a competitive advantage. Hotelmize’s price prediction algorithm processes information from 23 million hotel rates across the world.
The software solution is automated and easily integrated with all types of booking systems and APIs. It quietly works its magic behind the scenes, with no human intervention required. There’s no need for a travel company to change its normal workflow.
Recognizing the difficult times ahead for travel companies, the Hotelmize platform is available on a success-based model, making it completely risk-free.
Inspired by the algorithmic trading of capital markets, Hotelmize’s AI-based technology monitors hotel room price fluctuations from the time of reservation until the check-in date and trades the rooms in the same way that algorithms trade stocks in the capital markets.
Hotelmize’s algorithms utilize investment strategies similar to the financial market’s short and long positions, buying and selling hotel rooms in a completely automated manner to generate additional profits that were never available for travel operators before.