Hotelmize, a developer of AI-based price prediction and profit-optimization technologies for the hotel booking industry, said it is raising its B round investment largely in the Asia Pacific.
The Israel-based company also announced it’s establishing its APAC headquarters in Hong Kong as a gateway to APAC and China.
This financing round is led by the Alibaba Hong Kong Entrepreneurs Fund and Israeli-based Brilliance Ventures.
Hotelmize said it has developed proprietary technology that allows travel companies to increase their bottom-line profit by over 30% through streamlining and automating their procurement processes.
Inspired by algorithmic trading in global capital markets, the company said its AI-based technology monitors the fluctuations in prices of hotel rooms from the placing of a reservation through to the vacation date and trades the rooms the same way that algorithms trade stock in the capital markets. Room prices change dynamically, similar to options or warrants, which also come with expiry dates.
Hotelmize’s algorithms utilize investment strategies, similar to financial markets’ ”short” and “long” positions, buying and selling hotel rooms in a completely automated manner to generate additional profits that were not previously available for travel or hotel companies.
Hotelmize claims that it has handled over USD 2 billion of reservations and has created over USD 100 million worth of transactions for its customers including some of the leaders of the global tourism industry.