I would like to see Airbnb's description of exactly how smart pricing works. It must be there somewhere but I can't see any explanation of what smart pricing does.
Smart Pricing lets you set your prices to automatically go up or down based on changes in demand for listings like yours. You’re always responsible for your price, so Smart Pricing is controlled by other pricing settings you choose, and you can adjust nightly prices any time. Smart Pricing is based on the type and location of your listing, the season, demand, and other factors.