Automatic price setting - good or bad?

[Staci6]

As a new host, I decided to let Airbnb set my nightly price. I recently noticed that my rate is about half of the other Airbnbs that are suggested when someone is considering my place. Am I charging too little? I'm about to become a super host. Will that change things? When does Airbnb re-assess the listing and adjust the price? Thanks in advance for any advice.

[Matthew285]

@Staci6 if you feel the Smart Pricing is setting your price to be too low, you can increase the minimum price.

You can also use one of the outside pricing services, like WheelHouse or Beyond Pricing. They tend to charge more, while keeping your listing well booked. (They do cost money: 1% of the bookings. They both have free trials.) (Most users of these services feel they more than pay for themselves, as they help keep your pricing higher on average.)

You can also try the Free Demo on both services, which gives you an instant preview of how they would price your listing (without actually changing your pricing).

(The Free Demo is separate from the Free Trial.)

[Marzena4]

@Staci6 When it comes to the Smart Pricing algorithm, it is no smart at all. Many hosts, including myself, will jump in to criticize it. From what I noticed I'm in the minority using it. So to make it work for yourself you must:

1. look around the competition (local STR) and estimate absolute minimum per night per guest or per unit and set that price as your minimum;
2. check the maximum you want - beware: there have been some glitches with the algorithm going insane and setting sky-high prices;
3. manually edit any special days/holidays in the calendar and set prices for those accordingly because the said algorithm isn't that smart.
4. In low season it is advisable to set prices manually because Smart Pricing works best if there are many reservations in the area.

Once you figure those out, it's possible to use it. 😉

[Andrew217]

In my opinion, the Airbnb "Smart" Pricing is anything but. It recommends prices anywhere from 40-60% of the true market value of my listings. I have used many different automatic pricing softwares, and they are all worth the small 1% fee (you're almost doubling your income), and can recommend Beyond Pricing as by far the best service. Use this link for a free trial of their service, no credit card or payment needed: https://beyondpricing.com. 

[Karen886]

I think iv done this too but I cannot get out of it , I am annoyed at how long it takes to try and find out where I can remove instant booking ect can you help ?

[Amy38]

Smart pricing is a joke.  And many of the advertised prices of your neighbors do not represent what they charge for wkends or holidays or cleaning fees....do some pretand booking of equivalent properties and check them out.  Raise your price to near the competition aaat the very least.

[Adam15]

I don’t use smart pricing, I check on other similar properties and price up myself, it does take a little time but I feel this is better. I have a minimum 3 night stay as myself and my partner work full time and could not do the change over daily but I’m often asked to alter this, I’m advised that guests are looking for a shorter stay but I’m sticking with my minimum stay for now. 

[Mark37]

I'm going to investigate the 3rd party automated pricing tools. has anyone else investigated any of them?

[Laura2592]

@Mark37  I have and I found them to be of limited value. At least in my market which is not very tourist driven. It may be helpful for you in St Pete.  I was better off finding competition and watching their pricing, adjusting mine so that I could stay in the running. But that can be time consuming if you have a lot of competition in your area. 

As for smart pricing, I use it but my minimum is set at the absolute least I will take as others have mentioned. I regularly get reminders to set my price lower but I am almost totally booked for the year. 

[Mark37]

Thanks Laura. My rentals are in St. FL and Breckenridge CO...both very tourist driven.  I'm going to try one or more of these and if not included an automated messaging service.  I'll post the link to my research spreadsheet.

On another topic, are any of  you on Plus?  I am with two properties and I regret having gone down the path.  But now I feel committed, to try it for awhile. Missed appts, lost photos, .... reshoots, more lost photos...no response,  yet they have control over all the pictures.