Price tips

[Mercy97]

I noticed a big difference between Airbnb’s Price Tips and Smart Pricing. Price Tips often suggest I increase my rates by around 20%, while Smart Pricing tends to drop my prices to the minimum I set. It seems like Price Tips are based on market trends, while Smart Pricing adjusts dynamically based on demand. Has anyone else noticed this? How do you decide which pricing strategy to follow?

[Joan2709]

@Mercy97 

We don't use Smart Pricing (it's not very smart). I'm not surprised it prices your listing at your minimum price. I suggest Hosts use Dynamic Pricing (like PriceLabs) attached to their account. It is very affordable ($20/listing per month last i checked) and very accurate and well...dynamic; unlike Smart Pricing which is an Airbnb product that tends to underprice your listing.

If you want to choose between Smart Pricing and Price Tips...I might try Price Tips for now and see how it goes. The better option is using a Dynamic Pricing software.

[Quincy]

Hi @Mercy97, I hope you're doing well! I recommend trying to ask this question in the Q&A session that we currently have running with Christy Schrader, the Director of Host Engagement here 👈

[Jessica3408]

I also noticed a 20%+ increase with their Price Tips. I'm using Pricelabs so I'm not sure how accurate their tips are for me. I suspect you're accurate in your assumption that it's based on occupancy in the area. I'm also researching this topic. Thanks for asking the question... hoping someone can clarify this definitively.

[Quincy · Accepted solution]

Hi @Mercy97, I wanted to circle back to this thread and share that Nightly Price Tips are suggested prices based on a range of factors like your listing’s location and amenities, as well as guest demand and similar listings. Hosts can adjust their price at any time (I'm also tagging @Joan2709 here). 

[Joan2709]

@Quincy 

Thanks for the tag...😊

It's still a bit unclear to me still regarding the differences between Smart Pricing and Price Tips. Airbnb's info on Smart Pricing vs Price Tips is almost the same? Yet @Mercy97 & @Jessica3408 say using price tips the nightly rate is higher by 20% vs using Smart Pricing. I guess we'll get more info down the line on the differences.

Here is what Airbnb currently says Smart Pricing and Price Tips are (very similar). The only differences I can see are the words "ratings" and "past bookings" on Price Tips and the words "how many people are searching on a given date" in Smart Pricing. That leads me to believe Price Tips is based more on actual bookings, where Smart Pricing is based on how many people are searching. Not sure? 🤔

[Tammy45]

The price tips are outrageously wrong. I tried them on Airbnb and didn’t get any bookings. For example, I’m not located downtown which is a very popular area, but they seem to be pricing my rental as though it were an entire house and downtown.

my rental is near a convention center in a suburb. I have to go with what I priced with last year and what booked and what did not. Experience really counts here.

At least VRBO offers a graphic that will show you what you’re close to. I do not recommend airbnb‘s price suggestions nor the low prices that you see on Vrbo. Often I think they are competing with me my own rental comparing the price of my rental with each other if you know what I mean.

You can’t rely on either one of them at this time but I do find VRBO‘s pricing a bit better they try to get me to price so low especially on weekends and I do night especially because they charge me so much more in commission and the customers have deeper pockets

Also, I do area searches of hotels in my area since it’s either touristy or conventions. We have to research ourselves and use our own critical thinking choices.

[Patricia2526]

Hi @Mercy97 

Use Price Tips as a baseline, not a rule. Set prices manually based on Airbnb’s Price Tips + your own research.

[Divi-Divi-Properties0]

My Smart Pricing is above the price tips. I have no idea which to choose. Although I must say that since accepting the price tips, I've had more bookings (at the lower cost).