should i use smart pricing?

[Jean92]

Should i use smart pricing? Is anyone using it? what do you thingk about it?

[Marsha17]

Don't listen to Airbnb's suggested "Smart Pricing" unless you want to work for Free & have your beautiful, large home turned into a party house or a house for the homeless.

[Victoria57]

@Jean92 it just drives prices down, don't use it.

[Jean92]

thanks 

[David126]

Agree, anything but smart.

[Alice-and-Jeff0 · Accepted solution]

We use it and love it.  It has increased our booking price on average of 7% and we're booked 92% of the time. While I used to agonize over the price and if I would get a booking, now I let smart pricing do it for me.  I do watch for the weekends I know Smart Pricing might not catch an event or special occassion in town (especially those dates further out than the 4 month max).  Plus, they are willing to lower the weekend price earlier than I would - so December weekend prices are starting to go down already but I'm not ready to list lower just yet - so I override the prices when I think I can still get a premium even if Smart Pricing does not.  I do this for holiday weekends too, when I don't "really" want a guest but I'm not blocking the date either - like Thanksgiving.  I artifically inflate the price in case there is someone willing to pay, but if not, I'm not upset that I didn't book. 

My minimum is set at $43.  Smart Pricing's closest "low" has been and is for $51 on a Wednesday in December.  However, I have seen the opposite - prices rising into the $100s for high-traffic weekends.  To me, that's a recipe for disaster as anyone booking my guest room for over $100 is probably going to have an expectation that is not realistic.  That being said, we are already booked for those high-traffic days almost a year in advance (at $100/night - our max).  Maybe Smart Pricing would have been a Smarter option. 

Of course, we also like Instant Book as well and find the kind of guest who uses this feature is 1 of 2 types - (1) lazy and doesn't read the listing at all and then cancels immediately when you start pointing out that there is only one bed or dogs cost extra or we aren't located inside the Blue Devils stadium [read - annoying whether they use IB or not!] or (2) fantastic, high-quality, experienced guests.  Luckily for us, the VAST majority are in the latter category.  

With both IB and SP on, we find Airbnb to be a pretty agreeable system.  

YMMV

[Vincent216]

I find it incredible that you are seeing an increase in revenue. Is it possible that you have been “leaving money on the table all along”? I find AirBnb smart prices to be ludicrous! I have already lost hundreds of dollars this season (my properties are in a ski town) over past (4) years during prime periods by allowing AirBnb to set the prices. I now set minimums on all dates I know I will be able to rent and ONLY allow AirBnb to set prices to dates that I wouldn’t typically rent (e.g. midweek / off season).

[Jason1275]

Coming from a customer's perspective -- I inquired on a unit on AIRBNB. After a few days I made my decision and was ready to book long term after walking through the unit. PRICE INCREASED 20%, over a few days. This was made over $1,000 difference in price over the total stay.
If I'm going to face this kind of price volatility risk with Airbnb (20% price fluctuation in 3 days), I might as well contract with the host directly.

[Marsha17]

Good to read someone's experience with this is good. I find that in Kansas City, where I live, they want me to price a room that sleeps 6 for $20/night!! That's outrageus! And, not worth my time.  I do not run an airbnb in order to wait hand and foot on strangers who use all my towels and sheets for $20/night!  I am reluctant to allow Airbnb to have that much control over my time. On the other hand, I'm a new host, and I need bookings. So, I'm studying what others have done to get this airbnb going.

[Kirsten-And-Jeff0]

But you can set a minimum, no? Smart pricing doesn't go below that, as far as I understand.

[Fiona107]

yes and then that is all that airbnb uses - in 8 months it only ever used my minimum price and I have a lot of competition in the area and I am one of the lowest price 'entire' spaces to stay at.  I have gradually increased my prices and still get good business.  Smart pricing also does not take account of public holidays in the UK.  Airbnb is continually sending me messages to offer discounts and suggests lower prices, but why should I do that when I am doing very well thank you. 

[Paul1516]

I'm also wonsewond how smart, smart pricing actually is..... We are based in South Africa which is in the southern hemisphere, smart pricing incresses as one moves through to June July and August which is peak season in the northern hemisphere but WINTER in the Southern henhemisph. Does anyone know why this is, does smart pricing only work in Northern hemisphere places? Surely not but I'd be intrigued to find out?

[Nina432]

Hi Paul, I have the exact same thing.  As we in the southern hemisphere go into winter, my prices have gone up $50 a night and when I scroll through right to the end of 2020, it's still set on this high price. It does not appear to me that this smart pricing actually takes into account the location of the listing. And as others have also said, it doesn't take public holidays into account either.  I've just turned it off and limited bookings to no more than 6mths in advance so I can control it myself.

[Daniela556]

When I use smart pricing it always go below??

[Marsha45]

Hi, that’s not true. They go below your

your low price. I’m very saddened. I had to just tell a rep that 1 one bedroom rental with amenities can never be obtained for $29 in a hotel. This is really unfair. I need to find another platform to rent my space. Any suggestions?. 

[David126]

@Marsha45

Just set you own price, turn off smart pricing.