One of the factors that apparently influences Smart Pricing is Bookings History, and this is incredibly problematic. Many hosts only get a fraction of their bookings from Airbnb, and they often do not get their more advanced bookings from Airbnb. So not only is the Smart Pricing algorithm biased by not having pricing data from most bookings, but the bookings for which it does have pricing data will tend to be lower priced bookings since they are usually nearer term when prices have been lowered to fill up the calendar.
There may be other ways to fix this, but the only solution I can think of is to allow hosts to enter pricing data for their non-Airbnb bookings. Otherwise, Smart Pricing and Price Tips are essentially useless, and even worse are deceptive, since they only include a fraction of the real pricing data.