This year,  we turned on smart pricing.

On some bookings we are getting 15c to 20 percent more per stay.

Admittedly there is high demand.

We kept our base price the same as our normal price, only allowing smart pricing charge more, never less.

It was that simple. We followed sage advice from experienced hosts on this,  make your bottom price your usual price, and what have you got to lose.

It remains to be seen how guests perceive "value" as star ratings in their reviews, but for money in the bank we have already seen a boost.

So I'd give this a cautious thumbs up.

How are other fairly new hosts finding smart pricing?

40 Replies

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
England, United Kingdom
Level 10

@Michelle53 Including the cleaning fee is actually quite difficult. If the min stay is 3 nights do they amortise it over 3 nights or over 1 night or over the average stay length for that listing. I suppose they have all the data to do any of these. 

 

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
NY, NY
Level 10

@Mike-And-Jane0 @Michelle53  The algorithm just sets the nightly price.  Your other fees remain in place and are calculated appropriately.  A guest chooses your place and enters their dates and number in the party, whereupon the extra guest fee and cleaning fee if any are added in.

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Chicago, IL
Level 10

@Ann72    That's great. I'm going to switch it on and see what happens !

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Brevard, NC
Level 10

@Kevin1322 When I first signed up to host two years ago, Airbnb was pushing Smart Pricing (SP) pretty hard, so I signed up and have used it to date. At first I had a 2 night minimum and like @Mike-And-Jane0 wanted to price my weekends higher than my weekdays, so I set the SP minimum for the lowest weekday price I would accept (well above the suggested minimum) and over-rode SP on my calendar for the weekends to allow me to price those at a higher rate. I also included a cleaning fee and a weekly discount--love those longer, but not too long stays. Since Covid, I have a 4 night minimum and 2 nights prep time between bookings with an increased cleaning fee and a 14% weekly discount. For me, this has meant that weekend days do not really need to be priced differently than week days, so I raised my SP minimum and quit adjusting the weekend rates. Life is good, I am booked up for the summer and SP has worked for me :). Thanks @Ann72 for your amazing article (love your data and tips) and @Stephanie for including it in this thread.

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
NY, NY
Level 10

Thanks, @Jennifer1773, really appreciate it!

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Rio de Janeiro, Brazil
Level 10

@Kevin1322 

Thanks for sharing your experience with smart pricing. Great tip.

Re: Smart Pricing works if you get it right. And it isn't rocket science.

Level 2

Hii @Kevin1322 instead of Airbnb's automatic smart pricing, which usually ends up undervaluing my listing, i have recently started to use Airbtics, they provide real-time dynamic pricing, not sure how they do it accurately and if they are affiliated with Airbnb in any way. But it has been working for me great, hope it helps.

Re: Smart Pricing works if you get it right. And it isn't rocket science.

Level 2

Good to hear smart pricing is working for you, i was consistently getting lower revenue each month so i switched to 3rd party dynamic pricing tools like Airbtics, Beyondpricing etc. Airbnb Smart Pricing Too Low? | Airbtics | Airbnb Analytics you can read more about how to use smart pricing properly here. hope it helps

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Narragansett, RI
Level 2

I have smart pricing on and it works for the most part.  The pricing point would default very close to my minimal price... so I recommend setting the minimum price at what you actually want to get per room. 

I'm hoping the website makes changes to allow more options in pricing... like busy season and off-season...and weekday vs weekend pricing.  right now they don't differentiate.  

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Arkansas, United States
Level 10

@Kevin1322 @Maria14462 @Mike-And-Jane0 

 

We have found that Smart Pricing doesn’t really do anything for us but it’s probably because demand is low in this area and there isn’t much to compare with our listing.

Re: Smart Pricing works if you get it right. And it isn't rocket science.

in
Special Region of Yogyakarta, Indonesia
Level 2

I have Smart Pricing on.  We're new to this so started low to gauge demand then gradually increased it.  It seems to work fine but I have not yet seen the price increase at all.  We have taken 15 bookings in the last couple of weeks but the price remains the same as our minimum throughout the whole year and isn't changing at all.  Does anyone know how it actually goes up?

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