should i use smart pricing?

[Jean92]

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

[David494]

One thing to know about Smart Pricing is that that Base Price (only visible if you toggle Smart Pricing off) affects the pricing algorithm with Smart Pricing on.  Primarily it affects the prices > 6 months out, which seem to default to the Base Price. If the Base Price is set lower than the minimum Smart Price, the dates > 6 months out show the minimum.

Unfortunately the Base Price is not shown on the listing if Smart Pricing is on.  It used to work like that, and IMO is a better approach so guests don't get a shock when booking and seeing a price higher than the main listing page price.  When I've experienced that as a guest, I feel like I'm getting squeezed.

Hope AirBnB soon allows hosts to control how our listing looks to guests by allowing us to define the price in the listing preview.

[Stephen968]

"Base Price" (only visible if you toggle Smart Pricing off) (not to be confused with "Minimum") is so hidden that even Airbnb phone support doesn't know it exists. If Base Price was made more prominent, SP might function properly.

[Yoav4]

Well, to my experience, smart pricing is not so smart.

I'm using it but it alway choose my minimum price (even on weekends) although other listing have higher prices.
The only time it suggest more is on the end of the year (about 2-3 % more) and then the price is about half than any other listing around.

So, you can use it and put an higher enough minimum price and track it from time to time.

I would prefer that smart pricing will set prices relatively to my minimum and maximum choices and not absolute.
Meaning if I set 50$, on weekends it will be 50$ plus the average addition for weekend for listing like mine in this area.

[Vincent216]

I’ve found that smart pricing is only of value for periods that you would not typically / historically rent. Otherwise you are taking a big risk letting AirBnb set your prices which, I agree, are absurd. For prime periods you have to make sure to set your minimums correctly. I don’t set a max because more is always better, but I don’t think I’ve ever seen it.

[Lois-and-Darryl0]

@Jean92:  Smart Pricing is not the least bit smart.  When you spend time reading posts from other Hosts, most will agree.  It is always below the current price - just because you have open dates, it wants you to take a 10 to 20 percent drop in price, for a booking, although your listing is the lowest price comparable listing out of nearly 200 listings in the area!  Nope - I don't recommend "Smart" pricing at all.

[Tammy70]

Airbnb has a lot of diversity so it would be interesting to know your market.

We're rural, strong national park influence, six months strong season, six month weaker.

We're experimenting now that the busy season is over with various strategies:

1) never use Smart Pricing during the busy season

2) Use Smart Pricing in slow season whenever bookings two weeks out are scarce.

3) Use 10% discounts similarly

4) lower Smart pricing setting but add two day minimums when using the lowest price

5) occasionally use Smart Pricing for further out dates such as weekdays.  That is, until some of these days begin filling in.

6) using moderate cancellation policy in off months; use strict during busy months

These all show some benefit at this time, but we need more time to evaluate.

[Pete28]

If it doesn't work most of the time, what kind of smart feature is it ?

It should be looking at all properties located nearby including hotels and calculating relative price changes to spot such trends as summer, New Years, events, concerts etc. - instead it sets the price to the min value you enter.

Also - some guests have deduced that smart pricing may be on by default so once a date opens up in the future it will be under priced. They then book it and you are stuck. 

[Ren13744]

Mine was set at 70% below approximately than the going rate. I am virtually letting my rooms for free.

[4rooms-Sp--Z-O-O-0]

My impression is that Smart Pricing is a tool to compete with other similar service providers, by artifically lowering the prices of listings available on the ABB. This is the best marketing you can get, if guest books same room cheaper, coz ABB 'smartened' the price at expense of the host - to 'buy' guest's satisfaction.

I compared 'Smart' priced listings with those I have fixed rate manually, adjusted seasonally only, and ... I see no difference. Maybe there is 5-7% more bookings but at 10-15% less of money thus not really beneficial.

As I am not in the USA, there is no good monitoring of the local seasonal peaks and even holidays (that may work well in US) and recently it sold my rooms at the peak days in the season for a rate that could barely cover expenses. The biggest jawdropper was when it proposed that I lower price to 25$ for the New Year's Eve night when I sold all other listings for $150-180 that night. Well, turned off my last smart listing today... I will check in a while.

In 2017 I had also cases of triple currency exchanges (guests were charged in 3-rd currency and lost 10% on FX rates converted by the ABB - not credit card operator) - both cases were on Smart Priced listing. Reported to AirBnB by one guest and me. Never answered. 

[Pete28]

Yup - the last straw was it setting my New Years to half what everybody else was charging. Airbnb need a new cancellation policy - failure of smart pricing should allow a free cancel if the price is totally out of whack !

[Tammy70]

The same happened to us and I agree - and Airbnb should pay the difference or simple remove this service except as advisory - requiring hosts to set their prices themselves.

[Dixie7]

That's a good reason to fix your nightly price.

[Bob39]

Never use Smart Pricing, Price Tips or Instant Book. All will harm you.

[Margo21]

I don't trust Smart Pricing AT ALL.  Some prices are less than half my typical rates during high-occupancy times.  

[Vincent216]

I lost THOUSANDS this ski season on my two rentals due to smart pricing when compared to prior seasons. I now ONLY use it for nights / periods where I historically DON’T rent (e.g. mid week or off-season). Airbnb... you really blew it on this one!!