Hi, I realise this is an old post, but it interested me as I have a maths background. Most algorithms are based around certain assumptions, or constants. Playing around with airbnb suggests they have a penetration pricing model (get more customers in the door, more customers increases airbnb coverage), rather than a premium pricing policy that you describe (keep the price high to attract premium customers and exclusivity). You have to strike a balance between price and occupancy that suits you. Setting a minimum acceptable price in airbnb obviously helps, but I suspect smarter airbnb 'travellers' have already worked out that if they shop around they get the best last minute prices. This will drive the average price down.
I have had a number of enquires lately that expire, then come back, testing the pricing, or just outright ask me for a better price. Hold your ground, they generally come back if you have a good product.
Exclusive Hotels manage pricing very carefully and never advertise reduced prices directly (as customers will always expect them), but instead go to third-party websites to advertise their rooms cheaper anonymously or create specials, Weekend breaks etc, that will offer a cheap 'empty night'; often Sunday, if you pay full price for the premium nights. This is a good way to go.
I keep my prices constant, reflecting a premium property, and get a steady trickle of bookings, often last minute. For me, a higher occupancy would mean a lot more work for not much more return, if any.
The best suggestion to maximise return is to maximise the quality of your product, lifting it above the rest.
Trust this helps.
