@David
The not so smart Pricing algorithm has to be the crudest algorithm ever devised, Airbnb do not record enough information to make this algorithm accurate and useful in any meaning full way for example,
- The area of the apartment, room etc.
- The type of beds employed (in Poland it's not unusual to use skids/pallets as bed bases with a cheap mattress on top.
- Additional amenities (garden, pool, barbeque etc)
- Location agh...
- Professionally laundered bed linen.
- Breakfast Table
- Washing machine etc.
Empirically my last guest was absolutely amazed at the value he was getting with the exclamation "Wow" with an explanation that the last place he stayed in with a similar price had no proper beds and was not that clean, he was a single guy on his own and my 55m2 two-bedroom apartment, was a complete mis-match for him in my opinion
All configuration, sizes and finishes are being lumped into the one algorithm which is complete nonsense.
"Marginal Pricing" works for Airbnb it does not work for its Hosts who must cover the costs regardless of whether their making money or not. While Airbnb have zero exposure to the variable cost involved in below cost selling.
Regards
Cormac