@Deborah630 Yikes, that's low!
I do have an idea why, though: when you set up Smart Pricing, what minimum price did you choose? Did you use Airbnb's suggestion? Or a low minimum that was a little under that of your competition?
If you did, or if you chose a minimum that was lower than what you would ever like to get, well, Smart Pricing thinks you're okay with that number.
I've had the opposite experience with Smart Pricing. I set it up at the beginning of the winter, and for the minimum, I put in the price I would normally charge. For one of my listings, that's $297 a night. I figured if it never went up, I would still be fine with any bookings at that price.
The price rose through the high season, and I've gotten bookings ranging from $297 a night to $312 a night, with an average nightly price of $306 for the coming season so far.
In addition, using Smart Pricing and Instant Book brought my listings to the first page consistently, and I've gotten 60% more bookings by this point in the year than any previous year. No one who has booked has said a word about the price.
It sucks that you have this booking, but try adjusting your minimum to what you would normally charge and see if things improve. Don't be afraid of higher prices. You have a lot to offer and if you show that you value your listing, guests will value it too.