Is the Price Right?
Smart Pricing, Airbnb’s dynamic pricing software suggests pricing tips to hosts to get higher occupancy rates. Smart pricing lets you set your minimum rental amount and your maximum rental price amount. When this feature is turned on, it updates your nightly price automatically, based on the number of people searching for homes in your area, based on the low and high seasons, and the more positive reviews you accumulate, the pricing will update.
This method sounds convenient, but does it really have the host’s interests in mind? Not really.
Many Airbnb hosts are not happy with Smart Pricing
One of the main problems with Smart Pricing is that it underestimates the demand for your property, this, in turn, tends to price your property lower than market value. Airbnb does not consider what is going on in your city. When special events are happening in the city, like the Sakura Festival in April (in Copenhagen). Festival season in June and July. Christmas markets in Nov and Dec. This makes the demand for accommodation higher, which in turn, raises the market value of your rental.
Having Smart Pricing turned on you can not control the pricing of weekday or weekend pricing. Flexible nightly pricing is an asset to have on the Airbnb platform. There is no question that weekend pricing should be higher than say a Tuesday night price. It is a simple fact people travel more on the weekends.
Manually doing this yourself is time-consuming, headache-inducing and flat out no fun! Having someone do this for you takes all the pressure off.
HostMinded Can Help
Here at HostMinded, we do this for you with a long-term pricing strategy that is based on our own strategic pricing models. Our pricing experts leverage our models based on real-time data analytics. Just like Airbnb’s smart pricing we consider the season, the demand in your area and the reviews you have on Airbnb. We take that model further and consider other factors that will get you the right price for your place and your pricing is always kept up to date.