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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.
I have smart booking on for most dates. I keep the “minimum” as my base rate, which is higher than what airbnb thinks I should be charging but they’re not me.
I’m content with it, because I’m firm about my base rate. I didn’t notice a boost when I started using it, but at that time my market wasn’t as saturated as it is now, so i didn’t need to set myself apart from the competition as much.
A good thing about it, is I have been hurt before by Airbnb magically unblocking dates and my rate was too low/ not updated (Christmas 2015, I’m looking at you), and I didn’t want to explain to the guest/ decline, so I just accepted the below - market booking.
Now I know that even if blocked dates in the future become available, it will be above my base rate. I hope. ;D
Yes, you can. In fact, that’s what I did for the prices charged for today. Airbnb set my minimum of €35 and I thought this was ridiculously low for a Saturday night, so I overrode it and just got a booking at €49.
Come to think of it, perhaps “smart pricing” isn’t that smart, after all. However, I think it does give me a boost in visibility.
I am on IB but not smart pricing. I occasionally look at the rates recommended by AirBnB but they are usually well below what I ask and get. I noticed recently that their suggested rates are closer to what I charge. I wonder if their algorithm has noticed that I get the prices I ask anyway and have adjusted accordingly. When I charged about 25% less last year, below their current suggestions, they suggested even lower prices than those. I spend a fair bit of time looking at prices others charge in my area and seasonal demand based on previous years bookings and adjusting accordingly. I guess if you leave it up to them you effectively pay a “fee” which is the discount to your prices they suggest. If you do the research yourself you’ll do better.
One thing that has annoyed me though is in the reviews they include the average nightly price the guest paid. I consider this to be commercially confidential information, as any business would, which they should not be giving out. No hotel or guest house would ever publish the actual rates they have charged as opposed to the rack rates.
8 Jul - 11 Jul · $139 AUD
Jam Jerrup Sunset by the Sea
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