I would agree that prices are ridiculously low.
Suggested variation on Smart Pricing is from economiclly unviable low price to unrealistically high.
It always stuck on the lowes price though. The potential " High" seems to be just
some "marketing" fad to lure hosts into switching on smart pricing in hope of earning more but with a final effect of dumping prices.
Hosts seem to be lured into competition, lowering prices to the level that earning fall well below what would be long term rental income.....but with a lot more work and husstle involved.
The pricing does not take into consideration property price in a particular city and particular area.
I live in London.
My sugested prices are often no so ridicilously low but lower than what I pay for the propery abroad that I happen to know is 1 / 15 the value of my property, let alone the cost of maintenance.
In the past there were groups on Airbnb site where people from particular cities can communicate directly. Sadly, this is not the case any more so we can not syndicate in any way and keep the prices on acceptable level.