Their algorythms are just bots with no emotion.
Lower prices means more occupancy and more revenue for Airbnb from the guest side.
Cheski claims smart pricing hosts get 25% more occupancy. It doesnt take a genius to work out that if you have to drop you price by 30% to entertain that then this happens....
Example: Your set price 15 nights booked per month at 50 dollars = $750
Smart pricing with 30% discount but an increase of 25% occupany would be 19 nights at $35 = $665
Leaving you with more cleaning bills and time spent dealing with guests and a loss of -$85
And we need a computer to tell us we would be better off?
Leave it out and go do the math, stick to what you feel is the right price!