[Poll] Do you use Smart Pricing?

[Quincy]

Hello everyone,

Setting the right price for your listing is very important, though it can be quite challenging to adapt it to the various factors that come into play such as the area, season, or listing type (you fill in the rest!).

The Airbnb platform offers various functions such as the Smart Pricing feature, and we’ve seen throughout the Community Centre that you all have different hosting styles, as well as ways of using the platform. With this in mind, we wanted to get some of your insights and experiences on a key tool: Smart Pricing. 

Do you use the Smart Pricing feature? What are the tips and tricks you would share with fellow Hosts?

We’d love to hear more about your choice in the comments section below!

Thank you,

Quincy

[Emilia42]

I have smart pricing turned on. But I have to override it many times throughout the year because it is not seasonal. For example, my winter (low season) prices vary greatly from my summer (high season) prices. Right now, in February, the smart prices are hovering around my minimum. This is fine because it's the off-season and I am lucky to get a booking. Scroll forward to the summer months and the prices are $1 to $8 dollars above my minimum set price but 5+ years of hosting tells me that I can get much, much more than this. So in order to use Smart pricing to my advantage, (and actually make money so I don't feel burnt out and want to quit) I have to open my calendar one season at a time and increase/decrease my minimum price or override many dates when I know the algorithm is not working correctly. 

I also truly do not understand how the algorithm works/how the price is determined. I live in a University town. The busiest weekend of the year is Spring Graduation weekend. Every hotel and short-term rental option within a 40 miles radius is booked solid. I don't rent this weekend via Airbnb for various reasons but I always check to see how smart pricing affects the price considering the weekend is in such great demand. The price has never gone above my modest minimum. So I'm not sure what to make of it. 

[Quincy]

Hi @Emilia42, this is very interesting to hear. How long have you been using Smart Pricing for if I may ask? 

[Emilia42]

@Quincy I've probably been using it for around 4 years.

[Marit329]

We are in a similar situation. But for our area the smart pricing is wayy too low in general.  

[Sarah977]

@Quincy  No, do not nor would use it. Not willing to let some computer algorithm determine my pricing.

I also do not play the pricing game, checking what the "competition" is charging, or raising or lowering prices according to demand, holidays, seasons, etc. 

My nightly rate is the same every day of the year.

[Quincy]

Thanks for sharing this @Sarah977! Again, it's always interesting to hear whether Hosts use specific features or not. 

[Sarah977]

@Quincy  I can totally understand why hosts whose str listings are a major or sole source of income would vary their prices according to supply and demand, either manually or by some pricing algorithm. But for a small-time host like me, it's so much less time and hassle to just keep the same price all the time. Of course I might raise it by a few bucks from time to time, if I find my expenses like utility rates are rising, but what I avoid by having a static price are frustrating pricing issues, algorithms pricing too high or two low, constantly checking what the competition is charging or what their occupancy rate is, irritated guests asking why the price is so much more than when they looked at the listing a week ago, etc.

[J-Renato0]

Hello @Sarah977  I believe that in the region that you live in the temperature is almost the same throught out the year, is not it? There is no big difference between summer and winter.

If it is the case, you are not having a loss by setting the same price throughtout the year.

Anyway if there is a difference between what is calle low and high season you certainly are wasting an oportunity to earn more during high season.

If it is the case that there is high season, then if I may suggest, I think you should adjust a different price.
I'm not suggesting using smart price as it doesn't adjust the price correctly for popular holidays or high season.

[Sarah977]

@J-Renato0  The weather isn't the same here year round, no.

Tourist season here is from about mid- Oct. to late April. The temperature during the day is lovely and nights in Jan/Feb can be rather chilly. In fact, the nights have been getting colder over the years. Last winter I wished I'd had a heater in January. 

And the air is pretty dry in the winter and spring. Lots of dust.

In the summer it is super hot and super humid. Most people can't handle it. And it pours rain almost every late afternoon or night from mid-late June through Sept into Oct.

In the summer months you don't want to sleep with more than a top sheet. But I use a winter duvet from Dec.- April.

I have almost never had a booking from May- Oct.

So what I have isn't high season and low season, it's tourist season and dead season. 🙂

Also, I'm not sure you understood- I don't want  to spend time adjusting pricing. 

[J-Renato0]

@Sarah977  Sure I understand it!

Time is life and it is the most precious thing we have !

Time is also money. However, do not waste your time on things that will not bring you money.

Wise decision !

[Erik1582]

Exactly...! The price offered for our area was low and using the Smart Pricing wasn't smart...

[Colleen253]

Like @Emilia42 I have it turned on but I do not let it call the shots, for much the same reasons. The algorithm is not too smart. It’s only on because somewhere along the way I heard that using more Airbnb features places you more favorably in search. 

[Quincy]

Hi @Colleen253! Just wondering if you've noticed an increase in bookings?

[Colleen253]

@Quincy I couldn’t say. I’ve pretty much had it on since the beginning, and over time bookings increase for new listings generally anyway.