Why you should never use Smart Pricing

David126
Level 10
Como, CO

Why you should never use Smart Pricing

Most of the normal emails from AirBnB suggesting I lower my prices never mention where all the bookings I am missing out have been made.

 

Today I received an email mentioning a location!:

 

Add a weekly or monthly discount

So for those not familiar with Colorado, according to Google Maps Leadville is 1 h 28 min (81.5 mi) by Car.

 

No wonder their suggestions make no sense.  

David
53 Replies 53
Fred13
Level 10
Placencia, Belize

A funny example, of course an extreme case of the program not reconizing differences of locations. My neighbor who owns an island also, charges $3100 per couple per night (I know, totally insane), was playing with Smart Pricing just to see what it would recommend; suggested price - $191. The program had no way of knowing it was a private island.

Edwin57
Level 10
New York, United States

The why I see it is good for some and bad for others

 is too many of us out here you know what I mean with smart priceing is like playing a game it goes up and down 

David1600
Level 2
Grosse Pointe Park, MI

I am getting very annoyed with the INCREASING frequency of these email blasts for dumb smart pricing, instant book, and lower your price to boost listing.  Is there a way to BLOCK those reminders?

 

The new annoying message is Low Listing Appeal in red letters.

 

Follow Airbnb bots advice and it's a race to the bottom!!!!!!!!!!!!!!!!  It's as if Airbnb thinks that following the Motel 6 playbook is the key to success.

 

I am happy with a 67% or better annual occupancy in a seasonal market area.

 

I offer an upscale full apartment experience relative to single room competition, in a great and safe neighborhood.  I also have earned super host status.  

 

No need to compete for the under $100 per night crowd.

We have an ongoing social experiment with this. We have two listings for the same space. One has instant book and one does not. (The calendars are linked so we can't get double booked.) They both have Smart Pricing on. For some reason, the one without IB, with no reviews, the red "low desirability", and only one booking so far has higher rates, by $3-5 per night. The other listing, with over 100 reviews, super host, shows up at the top, instant book, is worth less on smart pricing somehow. WTAF?

@Todd-and-Reese0

 

That is amusing, and of course contra logical. I can not say I am surprised. Would be interesting to set up multiple listings to see how they are treated, I have a feeling what the results would be.

 

I did look to see where you are in Denver and needless to say you are nearer to me than my comparison in Leadville...

David

Thx for. Very interesting post! But how do you link calendars? I Have had no bookings for over a month since a not so good review saying they had no address!!

Rachel0
Level 10
London, United Kingdom

I also get frequent advice memos suggesting that 356 people have looked at my listing and then booked elsewhere for a cheaper price.  Pictures appear of the ten successful local "competitors" who are presumably taking all these people away from me with the added info that their occupancy rate for the next month is 37% while mine is 77%.  This is in west London where we have more Airbnb hosts than you can shake a stick at, but still they persist with the memos.  Back in October I only had ONE free night, but I still got bombarded with advice telling me that I could increase my occupancy rate for the month if I used Smart pricing, even though my minimum stay is 2 nights.  I really wish that the brilliant minds working all this out would put their brains to better use.

@David126

I usually end up laughing about the email blasts I get because they are just sooooo totally ridiculous, not even worth getting frustrated about anymore 🙂

 

I just don't laugh at them so much. I am worried.  Now they started clasifying your listings ad "not interesting / not appealing because of high price". I hope that they are not giving my listing a lower priority..... 

Becky9
Level 2
Milwaukee, WI

Does using Smart Pricing (or instant book) move you up in the listings? Or is that strictly based on traffic? 

IB certainly helps a lot.

David
Brian281
Level 3
Detroit, MI

I have a listing that comprises 4 of the bedrooms in my 6-bedroom home, as well as 2 private full bathrooms. Smart Pricing has recommended on several occasions that I rent this for $15 per night! I'm pretty sure the heating bill alone for that part of the house is more than $15 per night in the wintertime. That's all I need to know to avoid smart pricing.

Brian,  they should stop this madness right now.  I know which is the right price for my properties.  I have been renting them to guests for more than 15 years,  and I talk to local experts asking for their expert recommendation.  The "smart pricing"  system should be stopped as soon as possible,  because it might hurt the business with prices that are completely absurd and do not cover costs at all.

I'm told I have a low level booking rate but I'm booked 95% which is fine by me. Do they want blood? I'm the cheapest in my area.  They're also telling me I only get 2% of the listings looked at... WTAF?? 

I agree woth you.  Something similar to what you describe happens to me.  They want me to offer the apartment at a price similar to the cost of a car parking garage slot! It is total madness.  And they even tell me that my property is "not attractive because of the price". I am horrified that airbnb is telling to loose money.  I am a grown up man.  I studied all my life.  I spent 5 years looking for the right moment to buy a premium property in a premium zone to be able to charge premimum prices and now these absurd emails from airbnb tell me to offer my property at non premium absurd prices.  I am horrified. I am starting to use other platforms instead of airbnb.