Is Airbnb smart pricing worth it? HODL or Race to the bottom?

[Alex12990]

Hi all, 

Alex here, a new host from Settle, WA. I'm wondering how others price their properties. Do you use a set price or let Airbnb choose the value? 

Seems like an smart pricing is an easy thing to turn on, but in my part of the country, the drop in nightly price is pretty significant between seasons. I'm less then half where I was during the summer.

Should I hold out for a higher price or try to always be booked?

[Andrea6232]

Ciao @Alex12990 ,

if you want to use Smart Pricing, I suggest you set the minimum price per night based on what you think is feasible 😉

Andrea

[Paula]

Hello @Alex12990

I hope you’re doing well, and thank you for bringing this topic to our community! 😊

I am reaching out to some fellow hosts to see if they’re using Smart Pricing and if they’d like to share their opinions with you: @Lydia594, @Joey28, @Jason2680, @Kenchy0, @Kate2192 and @Maria22471 

Best regards,

[Kate2192]

Hi Paula

I initially used smart pricing but found it was out of whack with our peak season so price manually now. 
thanks Kate

[Lydia594]

Hi Alex! I don't use Smart Pricing, but I'll share a tip or two on pricing in general that helps me. I use Wheelhouse pricing. It's good to know your lowest price (your bottom dollar) and general base/regular price. You also want to know your market, know how far in advance you need to be booked. For me, I need to be booked a month out for the summer and about 5-6 weeks in the winter, early spring. Once you know the time frame for your market, you can change your prices so you're getting booked at the right time. If you're getting booked way too fast and are booked for months straight out, you're probably pricing too low. But let's say for your market you need to be booked 1 month out, if you have multiple days/weeks unbooked and it's less than a month out, that means your prices are too high, you should've lowered those prices sooner. I hope this helps, I can explain more if that's confusing. 🥰

[Maria22471]

Hi @Alex12990,

Great question! I agree with Lydia: knowing your base price and minimum price is key. Your minimum price should cover your costs and leave room for profit. It helps you avoid dipping too low, especially during slower seasons.

I tried Smart Pricing for about two weeks when I first started hosting. While it’s convenient, I noticed it set my prices much lower than I was comfortable with, even during peak times. I decided to turn it off and now rely on fixed pricing based on the season, demand, and local events like national holidays or major shows in the area.

I’ve found this approach gives me more control and helps maximize revenue. For example, I adjust my prices for high-demand weekends or special events, but I also lower them for weekdays if they’re not filling up.

It’s all about finding what works for you and your market. Also, there are numerous third-party pricing tools available that can help you fine-tune your approach and maximize your bookings. Good luck with hosting in Seattle!