Smart Pricing

[Lisa5560]

Hi

I have been using smart pricing with success for over 2 years but this year all my reservations are at my minimum price which is ok but thats not why i choose smart pricing, has it been turn off due to covid 19? Has anyone else experienced this? I thought it put the price up when demand was high 

Thanks in advance Lisa 

[Anonymous]

@Lisa5560  The "Smart" pricing algorithm is not designed to serve your interests as a host. Its function is to keep Airbnb's inventory underpriced compared to other rental platforms and hotels. Hotel occupancy rates are especially low due to the pandemic, so there's a lot of downward pressure on prices even though demand for private homes is high in many markets. 

My recommendation would be to look back at the data you've accumulated from past bookings to identify the rates that have been most successful for you.

[Ann72]

@Lisa5560  Smart Pricing, which I use as well, has only gone a few dollars over the base price this year.  Which is why I'm sure you do as I do and set your base price to what you would be happy with anyway.

As @Anonymous noted it's based on a hotel model, which lowers prices the closer you get to unbooked nights.  Prices are quite a bit higher for next year, but will undoubtedly go down the closer we get.

I did notice that last September, there seemed to be a change to the SP algo, because its pricing hasn't been nearly as robust as it had been for the previous two years.

[Mike-And-Jane0]

@Lisa5560 We don't use smart pricing due to it having  the fundamentally flawed concept of reducing price as the reservation date comes closer. This is especially problematic in times of Covid as people are booking late in case they can't travel.

Interestingly airlines use an opposite model of increasing prices the nearer it is to the flight.

[Nick1973]

Hi Lisa! I noticed the same exact thing, it varied throughout the week and major swings across months, but then out of nowhere it defaulted to my minimum. I want to leave it on because I am hoping to have it "realize" and alter certain dates but also, it basically just acts like default price?

Have you started a chat with support? I'm currently working on an Occupancy Tax battle so I don't want to cloud my efforts there with another convo... maybe you can ask them and report? 

[Lisa5560]

Hi Nick1973

Thanks for your reply, I'm glad I'm not the only one to notice this.

Everything I read about smart pricing is people moaning about it not working but it always worked well for me, it guaranteed a minimum price and was a bonus when it went up for peak times and advance bookings.

My next port of call is to Airbnb, I'll let you know if I have any luck getting an answer. They are so slow to respond at the moment its painful.

[Nick1973]

AWESOME. Yes I was so happy to find your post because of the same reason haha.

I would try with the Chat feature before calling, another thing I noticed people complaining about a lot is the call-in setbacks, but nowhere did I see mention of people trying chat!

Let's stay in touch @Lisa5560 and I will let you know what I hear about Occupancy Tax if that is also something on your to-handle list.

[Nick1973]

(PS: I don't know why the site deemed my initial reply as a solution haha)

[Mark116]

I've been turning it on and off, but when it's on, it is the lowest possible price as far as the eye can see, Thanksgiving week, New Year's Eve, everything the same low price.

One thing I've wondered about, is that previously when I did NOT have it on, I would be able to see what the Smart Price recommendation was for an individual month and then accept or not, and sometimes that was helpful.  The red dots that would tell you XX booked another place for $1 or $12 or whatever less was also somewhat useful and I haven't seen either of those features in ages. 

[Mike-And-Jane0]

@Mark116 So thats what the red dots meant! I always wondered....

[Lisa5560]

I have been in touch with Airbnb and managed to get a reply in about 2 days. The reason smart pricing isn't working at the moment is because of Covid-19 which is what i suspected. I've copied the message I received I think I got it right!

"   Don't worry Lisa I can definitely help you about smart pricing and I do understand your point. Upon checking Smart Pricing is based on the type and location of your listing, the season, demand, and other factors due to the pandemic many people don't want to travel for their safety it a big impact to our business that's why smart pricing will not put the price app due to covid."