Smart pricing does not work

[Michelle2475]

I had my calendar open for a shorter period of time because I don't want someone booking a prime month like December (ski area) at my summer prices.  I have one booking that did come in above my winter minimum rate.  I checked the estimated rates for the winter and they were all above my minimum so I opened my calendar for 6 months instead of three. I then got a booking request for my summer rate - went back and looked at my calendar and now all of the rates show at the minimum summer rate.  I closed it back to 3 months and declined the reservation.  (I did message the guest that the rates were wrong and he agreed he would be fine with the higher rate but did not book after I sent a special offer).  

I called Airbnb support and got the old "can I put you on hold for a minute while I check into this?" twice before being disconnected.  Since this happens every time I call with questions I just throw up my hands and give up.

So here's my two part question - is smart pricing just a way for Airbnb to force you into booking at low rates?  It seems every time I look at my calendar the rates are appropriate but then change when people book (to a much lower rate).  Also, my neighbors use Wheelhouse and their rates show as $150/night but then when you go to book they are $500-700.  Pretty unfair.  I tried Wheelhouse but couldn't get it to work properly and it even made my listing not show up at all.  Suggestions?

[Emilia42]

@Michelle2475 Yes, this is the most frustrating thing about smart pricing. I've stopped using it because of this 'lack of seasonality' ability. I keep it on but override 90% of dates. Smart Pricing should allow for different minimums based on seasons throughout the year, but it doesn't. In general, there are far fewer people traveling in the wintertime so the prices remain low. I have found that it is not specific to certain areas. For instance, I am in a college town. During the May Graduation weekend, smart pricing keeps my rate at the minimum even though there isn't any available rooms left within a 50-mile radius. 

[Michelle2475]

@Emilia42  I'm near Mt. Snow and was booked nearly every weekend from mid-December through March.  The main issue really is that I can't rely on it at all.  It's very frustrating to not have winter available right now.  Even leaf peeping season isn't booking yet all of my neighbors are booked (who use Wheelhouse).  I feel like overriding will prevent me from better rates.  I see you're in ME - are you in a resort area?

[Emilia42]

@Michelle2475 I'm about 1 mile away from the University of Maine but 90% of my guests are Acadia National Park overflow (which is 1 hour and 20 minutes away.) I override Smart Pricing most of the time because it won't push my rate up high enough. I'm getting $10-$40 more per night when I override smart pricing and set my own rate. If I raise my smart pricing minimum the rates just hover there. And in theory, my summer minimum is much higher than my winter minimum. If I were you, I would open the calendar and start playing around with your own rates. Look at what you were charging last winter and go 5%-10% above that. 

[Ann72]

@Emilia42  My 2022 calendar isn’t open yet, but this morning I looked at the 4th of July weekend, the weekend that is always fully booked across all listings in January.  And sure enough, Smart Pricing has it at the minimum price.  I’ve concluded that Smart Pricing is designed to go to the minimum at the most searched for dates, because Airbnb is obsessed with cheapskates.  It takes one to know one.

So yes, @Michelle2475, it’s absolutely necessary to override it most of the time.  Keep it on, because using it helps your ranking, but override it.

[Elaine701]

Considering how detached Airbnb often seems to be from the business it operates, I would never give control of my pricing to it. Even if it is supposedly "intelligent".

Airbnb has every motivation to price it in Airbnb's best interests, not in yours. That often means keeping the price low to ensure bookings, which is what Airbnb relies on for its existence. 

Several years, ago, we mistakenly enabled it and ended up hosting 8 pax for a week a total of about 40€ per night. No, not per person... for the entire villa. Lesson learned. 

[Summer64]

I don't do smart pricing. I learned it basically made me the cheapest place in town and I was getting some questionable guests as a result. I just search for places around me to book, look at their places, and price accordingly-making sure that I'm not the cheapest place in town, but only a few dollars more. Now, I am not booked every night, but I'm good with that.