The airlines first invented it, the hotel chains adapted and adopted it, more recently Uber has been using it; now Airbnb has jumped on the bandwagon and started suggesting to hosts the daily price they should charge to Airbnb guests using some algorithm which looks to have all the usual characteristics of a, so called, Yield Management System:
-Undercharges long forward bookers - something Airbnb obviously wants to encourage as they keep your money for longer
-Generally penalises late bookers.
-Sharper variations between mid-week and weekend pricing
-Outrageous prices when the whole world knows the town will be full
My observation over a number of years is that travellers and vacationers often move away from hotels to homestay to avoid the pricing uncertainty and fluctuations they find almost universally in the rest of the hospitality industry…
I do check the prices Airbnb is recommending for my property, but only to try and identify any long term pricing trends in my area.
Are there any hosts actually adopting the Airbnb pricing recommendations? If so, I would be interested in hearing their experiences.