Lay My Hat

I'm about 3 months into both running my first holiday let and using Airbnb, and generally I've been using Airbnb's Smart Pricing on the basis that, as I'm a newbie, surely Airbnb know better that I do?. About a week ago I had cause to examine my Smart Pricing prices for Dec 19 and Jan & Feb 20 as I'd had an enquiry outside of Airbnb for 2 weeks in January. Most of the dates around this time were smart priced at or around £103/night, which in my judgement was fine for the Xmas and new year period, but too high thereafter, so I reduced 2nd - 31st January to £55/night. So imagine my surprise when today I received an instant booking for 4 nights commencing 29th December at £68/night! Basically, some time in the past 6 days, so called Smart Pricing had reduced my £103/night price by over 30% and at a peak holiday period too!

I had a long chat session with Airbn and told them their Smart Pricing sucked and that they should take the hit, not me, and if they didn't then I'd feel obliged to look at other platforms for bookings in addition to, and possibly in place of, Airbnb and that they'd lose some, and possibly all, of my business. And I'd tell the world of my experience on this forum too. It was like water off a duck's back and they just said that Smart Pricing is dependant on many factors such as season, demand etc etc. I remarked that this was the new year holiday period, so demand should be higher and, with supply the same, the price should be higher, not lower!!

So I'm gonna scrap using Airbnb's Smart Pricing -it seems to be a complete nonsense. And I'm also gonna do what I threatened Airbnb I'd do and start using other platforms too.

Can anyone relate to this experience?

Pengman wrote:I'm about 3 months into both running my first holiday let and using Airbnb, and generally I've been using Airbnb's Smart Pricing on the basis that, as I'm a newbie, surely Airbnb know better that I do?. About a week ago I had cause to examine my Smart Pricing prices for Dec 19 and Jan & Feb 20 as I'd had an enquiry outside of Airbnb for 2 weeks in January. Most of the dates around this time were smart priced at or around £103/night, which in my judgement was fine for the Xmas and new year period, but too high thereafter, so I reduced 2nd - 31st January to £55/night. So imagine my surprise when today I received an instant booking for 4 nights commencing 29th December at £68/night! Basically, some time in the past 6 days, so called Smart Pricing had reduced my £103/night price by over 30% and at a peak holiday period too!

I had a long chat session with Airbn and told them their Smart Pricing sucked and that they should take the hit, not me, and if they didn't then I'd feel obliged to look at other platforms for bookings in addition to, and possibly in place of, Airbnb and that they'd lose some, and possibly all, of my business. And I'd tell the world of my experience on this forum too. It was like water off a duck's back and they just said that Smart Pricing is dependant on many factors such as season, demand etc etc. I remarked that this was the new year holiday period, so demand should be higher and, with supply the same, the price should be higher, not lower!!

So I'm gonna scrap using Airbnb's Smart Pricing -it seems to be a complete nonsense. And I'm also gonna do what I threatened Airbnb I'd do and start using other platforms too.

Can anyone relate to this experience?

Yes, we don't use it but set our own pricing. When we started out, I looked at other local equivalent properties and priced accordingly.

Jonathan

Booking.com does something similar and we ignore their suggestions on both platforms as they don’t compare like for like.

You’ll notice that their cut of the rental ensures that they get their money even if you only get 60% of yours.

Pengman wrote:... I'm a newbie, surely Airbnb know better that I do?

Well, you've unfortunately learned the hard way that they do not!!

Unless, of course, you are letting out a spare bedroom in the centre of San Francisco.