Some two weeks ago, I was asked by Airbnb to try their tool called “smart pricing”. I presume this is something new, at least in my area. So this lets me set a minimum and a maximum price, and the Airbnb algorithm then automatically sets a price for each day in order to maximize revenue.
So I set this up and I am absolutely thrilled by the result. Sure, the price this tool chooses is usually at the low end of the margin I provided, but I also got a booking six months from now, with a price 50 per cent above the minimum, so guests have obviously been “punished” for planning far ahead, and I have been rewarded.
To sum it up, my income seems to have increased quite a lot by using this Airbnb tool (in addition to using Instant Book). I have a feeling that Airbnb upped my ranking as a way of encouraging users of “smart pricing”, this is why I am getting more bookings than before.
I would love to hear the experience of other hosts who tried this. Yes, I just found some threads on this forum, from last year, discussing this very topic, but I have a feeling that the “smart pricing” tool might have become smarter, this year.