Is smart pricing regional?

[Jackie378]

I was looking for the smart pricing option, but I can’t seem to find the option for it anywhere. I’ve followed the step by step process that is clearing shown in the help article, but the only option I can see is price tip, which doesn’t let me input any minimum or maximum amount. I’m wondering is the smart pricing optional only available in select areas? I’m located in the Canary Islands, Spain if that makes a difference. 

Thank you.

[Rowena29]

Hi@Jackie,

You need to turn smart pricing ON in your booking settings

Go to edit your listing.

Select "pricing" from the option along the top

then under Nightly Price you can turn smart pricing on or off

It might be worthwhile reading people;s opinions on the value of smart pricing   - have a look through the threads on the forum.

Whatever you choose be sure to make your base price the absolute lowest price you are willing to accept - smart pricing them won't go below that.

@Robin0 created a great thread/tool which you may find helpful

https://community.withairbnb.com/t5/Hosting/Back-to-Basics/m-p/989567#M247127

Hope this is of some help

Regards

[Jackie378]

Hi @Rowena29 

I did check all options. I have spoken to other hosts here and it seems like the smart pricing just isn’t available here. Only “price tips”. 

[Rowena29]

Hi @Jackie0

Interesting!

I'm far from an expert, but I'm  not sure that it really makes that much difference.

I've used both systems.

With both you set your minimum base price,

With smart pricing activated - prices are populated based on your base price and some algorhythm used by airbnb that everyoe acknowledges makes little sense.

With price tips - the tips appear to be about the same as what was populated with smart pricing.

I use neither as I have no faith at all in the suggestions.

I got an alert just that other day telling me that accomodation simiar to mine was charging $118 a day less and that I should lower my prices.  I followed the link and the "similar" accomodation was  an unpowered camp site out in the country for $11 a night. I have a 4 bedroom 2 level beach house that sleeps 9, 5 mins from the beach.   At peak times - summer/Christmas holidays, smart pricing wanted to lower my price to the lowest prices of the entire year, but in winter - the slow season here,  when bookings are scarce, wanted to increase the prices to my maximum. I've not encountered many hosts who find it useful.

Teh advice re pricing  that @Robin0 gives in the link I gave you earlier is much more helpful I think.

Good luck!

[Ian35064]

Jackie

Im in Tenerife and have exactly the same problem, the smart price on/off button does not show. Did you ever work this out?

[Robin4]

@Ian35064 

Hello Ian, I just checked and 'Smart Pricing' is still where it has always been on my listing editing section.

1/.....Go to you listing editing page.

2/.....From the editing options at the left of screen go to 'Pricing and Availability'.

3/.....The second option as per this screenshot will be Smart Pricing.

I would doubt that Airbnb would consider removing the Smart Pricing option because a lot of hosts are tempted into using it thinking they are going to get more and better bookings.

The reality is Smart Pricing combined with Pricing Tips is a guaranteed way to lose money, they are not designed to help the host, they are designed to get Airbnb bookings.

Cheers........Rob

[Ian35064]

Your instructions are very clear but as you can see from my screenshot the Smart on/off option isn't there? Id love to know why?

[Robin4]

@Ian35064 

Interesting Ian, your screenshot does indicate that Smart Pricing is a thing of the past and Airbnb are going to continue to flog that 'Lower your Base price' line which they have done ever since I have been a host. 

In any case it hasn't come to my part of the world yet and if it does, it won't affect me. I have never used 'Smart Pricing' or 'Pricing Tips' and I never will. 

If I followed Airbnb's suggestions I would actually lose money every time I hosted a guest.

This one is suggesting I lower my price by 37%. Now if I actually followed Airbnb's suggestion, after covering my costs I would make a grand total of $6 pr night......

I host to a standard not a price and I am the one who controls my price.....not Airbnb!

Cheers........Rob

[Ian35064]

I am completely new to this, and I got 2 bookings which suggests my price isnt too outrageous. I did kind of like the idea of a smart price but most seasoned hosters seem to agree that it does not have the hosts best interest at heart. Thanks for the response.

[David8879]

@Ian35064 , apologies for sounding sarcastic - I was not (I really thought when I saw "iPad" on the left of the screenshot that problem is attributed to device used)

As @Robin4 stated

1. That is your place - your price - you can safely double what ABB "suggest" in most cases and that would be close to real price. So, ignore price tips. (There is another hhuge downside of turining Smart Pricing on - if you have spent your time and have customized prices on calendar - everything is getting overwritten.

2. Turn Instant Book off if you have not already - you have the right to decide if you want guests with bad reviews (or some other objective metrics) to let on your property 

3. Set your "BAse Price" sky high and manually control prices for different calendar dates

Good luck hosting

[Jackie0]

I think I may have I advertantly Been included in this thread it is an interesting topic my personal View Is that Airbnb won bookings at any price and when they make such statements as other similar properties are £50 less etc They are rarely on a like for like basis ..... I always stick to my own pricing which I believe is the right value for money for my accommodation for the customer having always viewed what is locally available and similar. For example I have an en suite bathroom Which I believe commands a small premium to a shared bathroom but Airbnb will compare the price of a similar property with a different quality of accommodation Which I do not believe is valid I never use price tips I stick with my pricing based on quality and value and I always get bookings the guests can work it out

[David8879]

How about using your computer as oppose to phone/tablet?

[Elaine701]

There's a much more effective way to "smart price". It takes a bit of work occasionally, but it's far more effective and gives a fairly clear indication of the market price you can command in your area. 

1. Go onto the Airbnb website (not the app) and search your area for accommodations like yours; same number of bed spaces, similar amenities. 

2. Make note of the pricing of each. Also look at their calendar and see how well booked they are. And read a few of the reviews. 

3. 10 or less similar places in your area will give you enough good idea of the range of prices you should be in.

If they seem extremely inexpensive, check their ratings and calendar. The cheap places book up much faster. People who are seeking the lowest price don't usually pay much attention to ratings. It's the ones willing to pay more that care about that. 

4. Now you know the price ranges, and what you can reasonably ask. If what you offer looks better than your local competition, then price it slightly higher than them. If others look better, then you should either upgrade, or moderate your prices. 

If you choose to price a bit higher, then just sit back and be patient. When the others get booked up, you'll be the only game in town. So just be patient. 

If your offering isn't quite as impressive as the others around you, then you've got some work to do, but in the mean time, be careful about going too low with the price. Low prices tend to attract guests who are only interested in price, and little else, and are often problematic. You should let the low price competition get those bookings.

Still, you really need to deliver a quality product if you want to command a good price. Making it look better might be a simple matter of new photos. Decluttering. Better lighting. It doesn't have to be expensive. 

In my experience, this is a much smarter way to "smart price" simply because it's not just about price, and it compares like for like, rather than comparing a campground to a 4 bedroom villa. Even if it means you have to spend an hour or so.

"Smart Pricing" won't do that. Its primary goal is the get bookings, and you'll be lower priced than the competition to achieve that. 

/tuppence

[Sybe]

@Elaine701 Great tips and very detailed, thanks for sharing! 😃