Smart pricing has gone wrong

[Tracy351]

Hi,, this is my first time using the forum.  My smart pricing has gone really wrong.  It has set every day next year to minimum price and I want to know if this has happened to anyone else

[Shelley159]

Hi @Tracy351 - mine rarely moves above the minimum, except for popular days close to the time.

You can keep the minimum high and manipulate the price with discounts - if there's really a lot of activity, you'll still get the upside from the smart pricing. Don't drop the minimum below the highest price you want during your availability window.

[Tracy351]

That has not been my experience over the 8 years I have been hosting.  My prices have always been above the minimum I set in the months and years ahead.  The weekends and school holidays have always been much higher.  Now every single date is set to the exact minimum, even for over a year ahead.  I don't trust the smart pricing anymore it has a severe bug and I don't think others should trust it either.  I've lost out massively on two bookings in April 2026.  One of them over the Easter bank holiday weekend.

[Joan2709]

@Tracy351 

I have never like Smart Pricing (it's not very smart). Yes, I have seen it set all dates to the minimum price the further you go out on the calendar. I recommend using a dynamic pricing software like PriceLabs (there are others).

@Shelley159 has figured out to set the min price much higher and using Custom Promotions to lower the price as needed. However, that adds an extra layer of monitoring. Custom Promotions are a great way to get your listing noticed more in search though. 

That said, any pricing system you use is never "set and forget". They all require monitoring and tweaking. You'll find dynamic pricing software much more reliable and efficient than Smart Pricing, but you still need to keep an eye on it and make adjustments; especially for holiday and event pricing.

[Tracy351]

Thanks for this.  I may well use pricing software.  My daughter uses it for her holiday let and she says it is much more reliable. 

[Joan2709]

@Tracy351 

I think the cost is very reasonable ($20/month for 1 listing?) you'll have to check.

PriceLabs is the one I hear most Hosts like, but there is also Wheelhouse and Beyond Pricing.

[Shelley159]

Yes @Joan2709 the software is very tempting, but a problem for some of us. The major pricing software packages are priced in USD. As they need repeat payments, a small-time host can lose money if you live in an area with unfavourable and volatile exchange rates - some months' bills could be a nasty surprise. You'd have to earn quite a bit extra from the software functions to make up for the extra cost.

Another issue is how well it will predict Airbnb prices outside of the main markets where many people use the same software (if almost nobody near you is using it to feed trends into it, will you still get the full benefit?). A free trial would be a good way to test some of the software options, but as we know the host then moves to the single fee structure. Some hosts here have reported problems getting back to the split fee when they choose to let go of the software (although one doesn't know how quickly those issues may have been solved after they posted here).

It's probably well worth a try for a host like @Tracy351 who's in the UK and who specifically wants to replace smart pricing. I don't know whether it may be good to first research which brand of software is the "smartest" specifically in the Devon area of the UK, or maybe they tend to all give similar results? It would be interesting if some hosts who've tried a few software options, especially those in more out-of the-main-market areas, could let us know.

[Joan2709]

@Shelley159 

Yes..agree.

I usually only refer to US-based situations since I am located in the US. Not aware of the pricing in other countries for PriceLabs, so good to know it differs.

Good point about single service fee! Forgot that now @Tracy351 would be moved to the single-fee only (Host pays the service fee), so that has to be accounted for in pricing. Not sure you would be able to switch back to split fee @Tracy351 if you did the free trial of PriceLabs and didn't like it?

Service Fee Changes - Software Connected Hosts

https://www.airbnb.com/help/article/1857

With any software connected to your Airbnb account, you have to monitor it. PriceLabs (and any similar) all have some areas that you have to watch out for and none of them are perfect. I still feel they are much better than Smart Pricing though. I think a 30-day free trial would be worth it as you suggest. I have heard other Hosts say they tried it, but then disconnected after the free trial as they felt it wasn't working well. The problem is, these Hosts may not have tweaked the software as necessary, or found the platform too hard to use (it is VERY detailed and comprehensive) and pulled the plug before they really gave it a chance.

@Tracy351 says her daughter uses a dynamic pricing software, so that might be helpful for her.

[Tracy351]

That is very interesting.  I didn't know that about not getting the split fee if using third party software.  That also has tax implications in the UK.

[Joan2709]

@Tracy351 

If you are not using a PMS, then there is no change in the service fee structure (unless you are already on single fee not split fee).

Those who use dynamic pricing software (stand alone - not through a PMS) will not have their split fee option changed...it's only if you add a PMS. Then Airbnb changes your fee structure automatically to single fee.

If you just add dynamic pricing (like PriceLabs) you are not converted to single fee Service Fee. 

Not sure how VAT changes when a Host does use a PMS in the UK? Maybe @Shelley159 can advise on that. 

[Shelley159]

Airbnb just has to pay VAT on its service fee @Joan2709 

So if the service fee is 15.5%, the total VAT inclusive Airbnb service fee in the UK is 15.5% x 1.20 = 18.6%

This is not a tax on the host or on the guest - it is Airbnb's VAT liability as a company that sells online services.

[Joan2709]

@Tracy351 @Shelley159 

***UPDATE

The single fee only applies to those using a PMS (property management system). If you are just using a dynamic pricing software (not through a PMS), then your fee structure stays the same.