Posted on November 29, 2017
What is Airbnb Smart Pricing?
Airbnb Smart Pricing is a feature that Airbnb hosts can use to allow Airbnb to price and update pricing for their listings. Airbnb takes into account over 70 unique criteria to determine what your listing price will be. Hosts can still set controls even while Smart Pricing is turned on. Here’s more about Airbnb Smart Pricing and some Superhost tips to help you determine is Smart Pricing is right for you!
What is Airbnb Smart Pricing?
Pricing your listing and updating your prices can be difficult, time consuming, inefficient, and ineffective. With Airbnb’s Smart Pricing algorithm, Airbnb will set your prices and relieve of this burden. Here are some of the criteria Airbnb uses in their Smart Pricing algorithm.
- Lead Time – Depending on how many days are left until the given date, Airbnb will adjust pricing to help you get booked.
- Market Activity – As more or less people are searching for accommodations in your area, Smart Pricing will update your listing.
- Seasonality – Time of year is a big factor for visitors in almost every location. Smart Pricing knows this and help price your listing accordingly.
- Your Popularity – Are you getting more views and bookings? Smart Pricing sees this activity and updates your prices.
- Amenities – When you add amenities to your listing such as wifi, TV, and other accessories, Smart Pricing will recalculate your listing price
- Price History – Your past booking prices are also used to determine your future prices.
- Reviews – And of course, reviews matter! As you receive more and more 5 star reviews, Smart Pricing will reflect this positive feedback in your listing price!
Is Airbnb Smart Pricing Right for Me?
Smart Pricing may sound like a perfect solution, but it may not be the best route for your listing or for certain times of year in your particular location. Before you decide to enable or disable Smart Pricing, check out these tips!
Superhost Tips for Airbnb Smart Pricing
Superhost Tip: Set minimum and maximum prices for your Airbnb listings. Airbnb Smart Pricing is notorious for under pricing listings, so setting a minimum price will ensure that you are not going to be under compensated for your hospitality! Here’s a guide to pricing your listing!
Superhost Tip: Keep a close eye on major events in your area as well as the more popular seasons. Smart Pricing often does not price these dates correctly and you could be losing out on a lot of money. Pricing these days manually may be your best option!
Superhost Tip: Smart Pricing does not honor your weekend pricing. Keep this in mind and adjust accordingly if typically sell weekends much higher than weekdays.
Superhost Tip: Even if Smart Pricing is turned on, your cleaning fees and extra person fees will still be applied as they normally are. Don’t worry about increasing your minimum price to adjust for this!
Superhost Tip: Remember that your weekly and monthly discounts are still applied whether Smart Pricing is turned on or off. Make sure your minimum price is high enough even with those long term discounts!
Airbnb Smart Pricing can be a valuable tool to help you get more bookings. Understanding how the tool works and use it to your advantage to get more bookings and make more money with Airbnb!