Smart Pricing Bug - erratic algorithm

[Marzena4]

This morning I got a shock. I have been using smart pricing for a couple of months. Minimum and maximum prices reasonably set. For a few days I haven't received any bookings for my main listing (the oldest, the most popular). Today I discovered how bugged the algorithm of smart prices is. The screenshots attached to picture the whole situation.

The algorithm, for no particular reason me think, set the prices of that main listing to the maximum. Also, the listing that has never been booked (whole apartment) is affected. My secondary listing (listed only weekends, up to 20 bookings so far) is NOT affected by the bug.

What is more, the suggested prices for that main listing are simply idiotic for my place. Also represented in the screenshots.

Anyone noticed something similar?

@Airbnb2 coders: Have mercy on us hosts. We have enough work but to check each day if essential options are working correctly.

And now from the settings in the admin panel:

And the unaffected listing:

[Cormac0]

In the words of Groucho Marx

“Gentleman, Chicolini here may look like an idiot and talk like an idiot, but don’t let that fool you.

He really is an idiot.”

Groucho referred to Smart Pricing as "Chicolini"

Regards

Cormac

[Marzena4]

 I cannot agree more with @Cormac0, @Duane4.

If you would want to rely on the algorithm for special events, forget it. It's stupid, not smart.

But what about setting a different weekend price, @Duane4? There is such a setting and you must check it.

[Duane4]

@Marzena4 completely agree. You can't depend on this al·go·rithmfor special events at all. It's stupid, not smart.

If you set Smart Pricing, which if it worked as documented we would want to do, it overrids weekend pricing. You have to go into the calendar and change every weekend price you don't like. Which makes it a lot of work.

Ideally they would fix this tool to make it work instead of insisting it works when it doesn't. It can't be that hard to do.

I gave them this example last night....

The way this tool works it's as if you had 10 ounces of gold which the yesterdays London AM fix was $1,311.05/oz but you'll sell it to me this morning for $900/oz because there is a lot of demand for gold this morning and I'll buy all 10 ounces.

[Marzena4]

But look, @Duane4, what the algorithm is doing with my prices for July for example (very high season in my city):

while my nightly price is as follows:

[Duane4]

We are all haveing similar problems with this tool. I created a profile on another booking site today and shut my listing here down while I decide what I'm going to do.

[Cormac0]

@Duane4

There is a very simple truth about smart pricing Airbnb don't care what the prices are as they have no skin in the game (Costs) they make money on every tranaction no matter what the price is.

[Duane4]

Couldn't have said it better. At one point with their pricing suggestions they were saying I should rent my place for $30 a night. Even with my limited cost structure I'd go broke doing that.

They are just interested in showing a lot of booking for their inpending public offering.

[Cormac0]

@Marco651

Wait till your utility bills start coming in and soon you will realise that you've made no money on this guest!

There is a adage quoted in these blogs quite often,

"The cheaper the rental price the higher the Guest maintenance" both in time and money.

[Carrie134]

As I've read here, and completely agree, Smart Pricing is not smart at all! I've experienced such a dramatic drop in my bookings it's almost as if I have blocked or unlisted my space entirely! 

I have been using it, but have set my particular listing price at $29./night., instead of their suggested kow of $25./night. Since beginning my Airbnb hosting in 2012, I used to have my space listed for $40./night and $49./weekends. Since the inception of "Smart" Pricing (I use the word smart under protest) I've not had one booking with anything over my minimum! Never! I live near 7 major ski resorts and also have close access to numerous other seasonal activities, not to mention the decrease in bookings!!! Grrr.

I've done my homework and looked at every 'similar' (as Airbnb puts it) listing in my area and the spaces that are $25.night are not even close to being 'similar'! I am angry that I've pretty much been 'forced' to adopt smart pricing just to get ANY listings. Oh, and don't you just love the emails saying "someone else just booked their place for $2./night less!!! 

It's certainly not working for me and that's why I've been posting for co-hosting and/or cleaning Airbnb spaces opportunities.  I have my own cleaning business (w/30 yrs. in the Mortgage business). So if you know of anyone in the Salt Lake Valley, please refer them to me! My listing is called "Skier's Dream, Near 7 Major Resorts, Scenic Sandy".

Thanks 🙂

[CNB0]

 Can you not turn off smart pricing? I did. That really annoyed me. And I didn’t TURN IT ON THEY DID. Every day even though I turned it off and have had many chats with them, I have to go into my calendar and make sure my price is as it should be. The other day two days in March were lowered. And not by me. Hmm now how did that happen. Also I rented my place for the month of June and even though the price was 115 they gave her a discount of 110 because they said it was a currency exchange thing, WHAT! We are both Canadians. It’s canadian dollars. Sigh. She had already paid what could I do? I am vigilant about checking my pricing calendar. You my dear are not alone. I feel your pain. 

[Oomesh-Kumarsingh0]

 All i can say is that the smart pricing is not smart at all!

[Marzena4]

Maybe finally Airbnb coders will look into it - it seems the algorythm is playing tricks again - I get some random dates in July in my secondary listing at very high rates...

[Nic-and-Gloria0]

I noticed nearly the identical problem as the original poster: drastic increase in price to nearly the maximum level, starting at the end of August and lasting until almost the end of December.  Mind you, this is a vacation destination community and visitorship drops off precipitously after Labor Day (U.S.).

Tech support's only comment was that the algrorithm was fallible, and then suggested I turn off Smart Pricing. REEEEEEEEEEEALLY???

He also said that Air BnB doesn't release information about market demand... 

OK, so I'm not alone. The next sound you hear will be the "OFF" switch...

[Marzena4]

I can only confirm that nothing has been improved. The algorithm seems to ignore many important factors, like location or local events.

[Heather415]

Marzena, I've noticed that you posted about this as early as 10/4/17 and still in Aug. 2018!?!

I must say that the concerns aired here build a case against "Smart Pricing" that sufficiently charges AirBnB with being DECEPTIVE in their presentation of this as a feature.  We should herein demand that they discontinue the feature until they can guarantee that it will operate in a stable, lodgically sound manner. 

With only two AirBnB suites, this week, we not only had to deal with a hold over guest, I also had to spend hours on the phone while staff tried to identify & defend three different CRAZY pricing problems which were finally determined to be related to "Smart Pricing."

The same guest suffered two of the glitches. When she extended her 20 night stay - 4 nights, her nightly price wasn't just higher on her additional nights, it when up to the new higher price and recalculated her entire 24 night stay at the higher price!  charging her an additional $100.00!  Much time for that correction!!!  Then she added one more day and the price for the 25 night stay dropped below the 24 night price!?!  the resulting difference was for me to lose $70.00 due to the extention!!!  And painfully, the time for identification, correction and now follw-up here and hopefully the feedback department has been very wasted!!!  AirBnB could d/c this "Stupid Pricing" feature until it is functional. The disingenuous continuation of the feature is has me quite concerned.