What is the logic of Smart Pricing? I thought it was to float the price based on supply and demand. But it seems to have more logic than I can understand.
I have two rooms. One "Private room" has a bathroom just for this guest which is across the hall from the room. The other "Room/bath" has an ensuite bathroom accessible only through the room.
I had both listed for $85 per night. I turned on Smart Pricing.
(1) SP always sets the price of the Room/bath LOWER than the other. I thought having an ensuite bathroom was a feature that should command a higher price if anything? Why lower?
(2) Today I reset the base price for both to $95 and set the lowest acceptable price in Smart Pricing to $85. When I looked again, the system had reset the lowest acceptable price to $73. Why is it overruling me? Acceptable to whom?
As a point of reference, a client recently told me that she searched for an affordable hotel room in Boston and the lowest she could find was a room in a hostel with a SHARED bathroom for $150 per night. The hotel a half mile from me starts at $250 per night.
What is the logic of Smart Pricing?
Thank you,
Joyce
