Smart pricing

[Josephine7]

I know smart pricing is not popular, but until recently I was happy that it often meant I got higher prices for my rooms. Then all of a sudden I found smart pricing had priced one of my rooms below my minimum. The policy clearly states that the host is in control of their prices and the max and min prices set by them will not be overridden. I queried this with airbnb support, only to be told that if the average local price is lower than my minimum then they will implement this. That is not what the policy assures us! I got nowhere with the assistant but she did say she'd escalate the issue. I'll never know if she did and I don't hold my breath that they will amend their policy. I've now switched off smart pricing!

[Shelley159]

Hi @Josephine7 

Did you check that you did not have any specials or discounts set?

[Marie8425]

@Shelley159 @Josephine7 

My understanding of Smart Pricing Is weekly or monthly discounts are applied but rules are only in  effect if Smart Pricing is turned off

[Shelley159]

@Marie8425 

My smart pricing is on, when I run a promotion it can go well lower than the minimum price. The chosen promotion % is applied to the median, they explain it as:

When we calculate the discounts, we look at the 60-day median price for each date. In other words, we line up all of the prices you had set for that date from lowest to highest, and the price that falls in the middle is the median.

I don't know if @Josephine7 is running promotions/discounts on the dates in question, but depending on the prices, it could be the cause of going below the minimum.

[Marie8425]

@Shelley159 

You are responsible for choosing the listing price.

Smart Pricing

Smart Pricing lets you set your prices to automatically go up or down based on changes in demand for listings like yours. You are always responsible for your price, so Smart Pricing is controlled by other pricing settings you choose, and you can adjust nightly prices any time. Smart Pricing is based on the type and location of your listing, the season, demand, and other factors.

Smart Pricing minimum price

If you have opted to add a discount to any nights, the price guests pay may go below the minimum Smart Price you have set for those nights.

I was wropng Rule Sedtgs will b e applied whic h could of lowered your minimum pricing

How rules are used to calculate your nightly price

Once you apply a rule-set to a listing, it'll override any existing pricing and availability settings you’ve set for those dates.

Note: Rule sets will apply even if Smart Pricing is turned on.

If your rule-set includes multiple pricing rules, they’ll be applied in this order:

1. Nightly and weekend pricing
2. Length-of-stay (weekly, monthly) discounts
3. Early-bird and last-minute discounts

For example, this is how the price would be calculated using a rule-set with both a nightly rate rule and an early-bird

So you as the Host determine the Minimum Price, but you as the Host could have rules or discounts the platform applies which may result in  below your minimum price  Airbnb does not lower the minimum price unless the Host has chosen to reduce. 

I use Smart Pricing also, so I wanted to understand. Haha

[Alicia753]

Hi Josephine,

It's definitely frustrating when a tool like Airbnb's smart pricing doesn't work as expected, especially when it sets prices below your specified minimum despite policy assurances. This kind of discrepancy can be disheartening, especially when customer support doesn't resolve the issue to your satisfaction.

Switching to a more reliable and customizable tool like PriceLabs could be a beneficial move. PriceLabs offers dynamic pricing which adjusts based on comprehensive market data, demand trends, local events, and more, allowing you more granular control over your pricing strategies. You can set specific rules, minimum stay requirements, and ensure your prices never fall below your desired minimum. PriceLabs’ robust functionality and integration with various property management systems make it a strong alternative for hosts seeking precise control over their rental income.

Exploring PriceLabs with a trial period or reviewing feedback from other users can provide insights into how well it might integrate with your hosting approach, potentially leading to better control over your property's profitability.

I hope this helps.

All the bestm

Upfish Management