Use Smart Pricing to automatically adjust your prices based on demand (2024)

FAQs

How does smart pricing work? ›

Smart pricing is a form of dynamic pricing that uses real-time market and competitive data to set the optimum price automatically. Intelligent prices adjust based on factors such as sales performance, inventory levels, and market conditions, allowing businesses to maximize profits and improve conversion rates.

Turn on Smart Pricing if you want your listing to be automatically competitively priced for your area—without you needing to constantly monitor it.

Go to Your listings on airbnb.com and select a listing. Click Pricing at the top of the page. Next to Nightly price, click Edit. Next to Smart Pricing, click the circle to turn on Smart Pricing.

Smart Pricing uses the results of massive amounts of data, including actual sales transactions and auction prices, which are analyzed and adjusted to account for seasonality and market trends.

Implementing smart pricing aims to increase the chances of getting booked for your vacation rental property. When you get a lot of bookings, managing them can be rather time-consuming.

Don't worry: All pricing information is included when you book—but there are a few situations where you may owe more after paying: You change your reservation (ex: You add another guest) Your Host files an AirCover for Hosts request for damage that occurred during your Airbnb stay.

Implementing LOS discounts in your pricing strategy is an excellent approach to attract longer bookings. By offering discounts for weekly or monthly stays (typically around 10% for weekly and 20% for monthly), you encourage guests to consider extended stays.

Use Other Listing Platforms

Finding a rival website to showcase your property is another method to completely avoid paying Airbnb's service charge. Your budget may be better fitted with other platforms, such as Vrbo or Tripadvisor, which have reduced service fees.

When should I lower my Airbnb price? ›

As a rule of thumb, you can look to reduce your nightly rate by 10% each day in the final week leading up to a vacant block on your calendar. The proviso to this is knowing your 'red line' – the amount at which it becomes unprofitable and/or not worth your time or effort to get booked below that price.

The Art of Requesting a Discount. The listed price doesn't have to be the final price. Hosts and guests are free to negotiate.

If you submitted a trip change request to your Host and they accepted, your reservation will be updated to reflect the changes at your Host's current daily rate. As with any hotel or B&B, your Host may have raised (or even lowered, if you're lucky) the prices since you originally booked your reservation.

Smartpricing's algorithm processes the collected data, calculates starting prices, and applies the most effective dynamic pricing strategy based on your facility and market trends.

Agency pricing refers to the structured approach a marketing or advertising agency employs to determine the cost of its services. This involves strategies like hourly rates, project-based fees, retainer agreements, and value-based pricing.

The Smart Pricing algorithm appears to have grown revenue by 8.6% for hosts while decreasing rates for guests by 5.7%, according to research conducted by a team of researchers from Carnegie Mellon, Harvard, and the University of Toronto and published in the journal Marketing Science in October 2020.

Smart pricing is a dynamic pricing strategy, which means the cost of goods is adjusted according to certain criteria, such as market conditions or competitors' quotes. This pricing model is often based on price monitoring: you find out what rivals charge for similar products and try to come out with a better deal.

As a Host, you can change the price of a confirmed reservation by sending your guest a trip change request. If the guest accepts the request, the reservation will be updated and the guest will be charged or refunded if necessary. If they decline or don't respond, then the reservation will stay as is.