Airbnb Smart Pricing

Since the launch of Airbnb, it’s has been ruling the travel industry, and it’s now over a decade, and Airbnb remains unbeatable. This success of Airbnb is basically due to the convenience that it offers. Airbnb offers a myriad of features, and one such convenience feature is Airbnb Smart pricing.

1. What actually is Airbnb Smart pricing?

Airbnb Smart pricing is a great built-in tool that evaluates and analyzes data relevant to each property listing. Airbnb collects data from numerous sources and then updates the pricing on your listing according to the market price. One perk of setting Airbnb Smart pricing is choosing the minimum and maximum prices, and the change could be according to the numbers you have selected.

You can explore this convenient feature by clicking on the ‘pricing’ option present at the top of your listing. Then you can click on the ‘edit’ option to review or adjust the nightly price. The circle present next to ‘smart pricing’ will set the feature ‘on.’

You might be thinking, ‘cool, that’s easy. Well, not so fast! You should understand the ins and outs of this Airbnb Smart Pricing feature before handing it complete control over your nightly rates.

2. Demand in your property area

The local demand drastically affects the pricing. That means they need for rentals is high in your area; the pricier your listing would be set.

That’s one perk of the Airbnb Smart pricing option. If you choose to set your price yourself, you will have to keep yourself updated about the demand in your area. Airbnb Smart pricing tool will do that for you.

If you live in a touristy place with a high influx of vacationers in a specific season, then the prices of your listing will vary according to the seasons.

Also, if you are in a business hub and the location of your place is ideal, then your price will be set by the tool accordingly.

3. Your average rating and the number of views your listing has

Airbnb considers the number of views your listing receives when setting the nightly price of your rental. The quality of your reviews is another crucial factor using which Airbnb Smart pricing tool recommends your rental rate.

Both these factors generally affect your prices. Obviously, the guest will be okay to pay more for the rental who has ‘good words from others to speak for them.

4. The type of property

The type of property obviously has to have an effect on the overall pricing. The price of a bungalow or condo will definitely be higher than an apartment.

Also, if your property offers excellent views, has an ensuite, balcony then this will affect your Airbnb listing price. The number of rooms available for the guests is another essential factor.

5. Availability of listing

The more available your rental is, the higher the pricing tool will recommend you the price. Think of it from Airbnb’s point of view; if your property is available to be rented all year round, Airbnb will take this listing as being handled by a professional host and not someone who takes Airbnb businesses as a side hustle.

This somehow translates to a better guest experience and hence a higher suggested price.

6. Search category

From the above description of what features this takes into account before suggesting a price, this tool seems almost perfect. However, it’s not as much of a convenient tool as you might think. Many hosts have experienced some setbacks with this tool.

You need to decide of this tool works for you or not. Let us help you a little. We have mentioned below some pros and cons of this pricing tool so that you can choose if it’s for you or not.

7. Pros

Control over the minimum and maximum prices

When you activate this feature, Airbnb asks you to set your minimum and maximum range. The algorithm setting the price will never go before your range. You still have control over your prices, and whilst Airbnb automatically changes your price, you would never go to a loss.

Generates prices on real-time metrics

Airbnb constantly goes through the patterns and trends in your local area. It will set your price according to it. For instance, if there is a concert happening in your local area, your costs will automatically jump higher.

Keep your prices on the threshold

Prices change according to the market demand. If it’s the tourist season, your cost will be high; however, this tool wouldn’t let the price go too high and keep your vacancy rate under a threshold.

8. Cons

Airbnb Smart pricing can set the price too low

Yes, the price will never go down your set limit, but setting your prices to the lower end of your scale isn’t very beneficial.

If you’re new to Airbnb and your listing is not much old, then setting low prices can be good to boost your listing and get excellent reviews. However, once you’re established and have a higher footfall, you want your listing to have higher prices.  

Underestimate your listing value

Some hosts have complained that Airbnb Smart pricing is trying to win over the hotel business, and for this, they don’t care about how much the host is earning. This tool will increase your price in the ‘high season, but not to the extent that hosts expect and what others are the same area charging.


There are many helpful features that Airbnb offers to both the guests and hosts. Keep in mind that all these features are algorithm-based and work automatically; therefore, you cannot raise a question to Airbnb.

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