A Scottsdale startup aims to help property managers take the guesswork out of pricing for short-term and vacation rentals.
Quibble’s AI-based software platform is based on the dynamic pricing science of the airline industry but streamlined specifically for the short-term rental market, said Neal Cyr, cofounder and CEO of Quibble.
“If you think about the technology that is deployed inside the airline industry for pricing, it's serious,” Cyr said. “And if you look at how the pricing science or technology has been deployed for the short-term rental market, it's in the beginning stage.”
Quibble, one of Phoenix Business Journal's 2024 AZ Inno Fire Awards nominees, is looking to capture a piece of the short-term rental market that's estimated to reach $315 billion worldwide by 2030. The startup provides property analytics and market intelligence data to help property managers understand their portfolio performance and how it compares to the overall market.
The company estimates its software and pricing model could help property management companies with an average of 100 listings under management capture 30% more revenue than competitors via predictive insights into consumer behavior as they shop online.
“When consumers shop online for short-term rentals, they follow predictable patterns, beginning with filtering properties that make sense for their itineraries," Cyr said. "Then, they’ll make a decision based on location, images, reviews and price of other nearby rentals."
What's more, Quibble developed an AI model that uses computer vision to evaluate images of short-term rentals, allowing property managers to select the highest quality photo for their listings.
“So, if I can understand how much each of those will impact your decision, I can understand what the chances are you're going to pick my property,” Cyr added. “Then, from that data, I can tweak the price to say ‘Okay, here's the best price to put out there for this single night.’”
Company to ramp up sales
Cyr has more than a decade of experience in data analytics and revenue management. Prior to co-founding Quibble with Gustavo Pecunia in 2020, Cyr was a revenue management analyst for Frontier Airlines and Virgin America.
After Alaska Airlines acquired Virgin America in 2016, Cyr founded PasRM, a revenue management and dynamic pricing company that forecasts and optimizes flight revenue in real-time. When the pandemic took hold worldwide in 2020, it threw the airline industry in flux. Cyr saw a business opportunity to introduce dynamic pricing into the short-term rental market.
To date, Quibble has more than 60 property management companies worldwide on its software platform and is looking to grow its market share through new "integration partners," he said.
In 2022, the company forged a partnership with Guesty to integrate its software into the company's short-term and vacation rental property management system.
In April, Quibble took home third place and a $5,000 prize at the Venture Madness Conference and Expo, the state’s longest-running pitch competition.
“It was our first step into Arizona’s early-stage community," Cyr said. "StartupAZ is probably something we’re going to be involved with next."
Quibble has 10 employees and has raised more than $400,000 in capital. The company may next consider opening a $2 million seed round to ramp up sales and marketing for its platform.
While Quibble's near-term focus is on the short-term market, there's potential for the company to introduce its pricing model to the hotel industry in the future, Cyr said.
“For us, the short-term rental market is huge," Cyr said. "The hotel market is two to three times bigger."
