Airbnb Auto Pricing tool

[Juliet819]

Hello Everyone!

I have a question, please. I turned on Airbnb smart pricing when I set up my listing. My current nightly rate in the winter here in Minnesota is $100 a night. I just got a booking for July 13-14 for my current nightly rate.

1. How do I decide what to charge in the summer months?

2. Do I have to go in and manually change the prices on the calendar? If so, what's the point of Airbnb's auto pricing? Am I using it wrong?

Thank you,

Juliet

[Lorna170]

@Juliet819  Most experienced hosts will suggest that a new host NOT use smart pricing until the new host has determined how a static price attracts bookings.

Smart pricing does not know about seasonal pricing, event pricing, or anything that pertains to your specific location other than comparing your price and open calendar to others in your area that have been booked, (and not necessarily the same size or same amenities) and then suggests a price that may or may not meet your profit needs.

If your property is in a location that is seasonal, raise your price by a percentage that would reflect demand -- if a beach location, 25% above winter rates.  If a ski location, 15% above summer rates.  If you are in a location that has tourists year-round, compare similar accommodations (size and amenities) and pick a mid-range all year price until you are confident that your property is being marketed well and you are happy with the number of bookings and profit.

I have been at this for over 20 years and I do NOT use smart pricing for my properties.  

[Juliet819]

Thank you @Lorna170 ! Since you've been been doing this so long, may I ask one more question? Have you ever tried those pricing platforms? I'd like to not feel like I'm guessing. I'm the only RV in the area. My property is remote. My competition is a cabin and a campground. My RV is really beautiful and brand new, has a lot of amenities. I'm currently charging $100 a night. We currently can't have water due to the freezing temperatures. Instead, in providing all the water they need in jugs and bottled water. The bathroom is still usable. Just no sinks or showers. I'm proving body cleansing wipes and dry shampoo. We have winter and snow until mid-may. What should I charge in April and May when the snow is coming and going? What should I charge all summer when I do have nice weather and water? Ahhhh! Lol

[Lorna170]

@Juliet819  No, I have not tried any pricing platforms.  There are enough (actually too many) properties in my area that I have been able to compare and adjust my pricing over the years.

I am not familiar with your type of accommodation or the guests that it would attract so I have no real advice for you on what you should rent for.  (I wonder how well your guests would react to the no running water status -- wow).

[Alicia753]

Hi @Juliet819 I recommend not turning on Smart Pricing if you would like to set up pricing for your peak months. Smart Pricing adjusts your rates based on various factors like demand, season, local events, and past booking trends in your area. I've been hosting for years and not using Smart Pricing.

You always have the option to manually adjust prices for specific dates on your calendar. This can be useful if you're aware of local events or specific demand trends that might not be fully captured by Smart Pricing. You can also click on the date in your calendar and manually set the price. 

You may also consider, using third-party pricing tools instead of using Smart Pricing. Many pricing tools offer sophisticated algorithms that analyze a broader range of data points, including real-time market trends, local events, and historical booking data. They often provide more detailed customization options, allowing you to tailor your pricing strategy more precisely to your property and target market. Hope this helps!