Dynamic Pricing Tools: A More Reliable Alternative
As an Airbnb host, your priority is to maximize your earning potential (vs. providing cheap rental accommodation options for guests). Any price tip recommendations you receive needs to be as specific to your individual property, your local area and your local competition.
Recognizing this and the inherent limitations of Airbnb’s Smart Pricing tools, dynamic pricing companies have emerged to provide exactly this service.
These companies dynamically research and monitor…
- Supply and demand
- Events in local area
- Seasonality factors
- Day of the week
- Time till booking
They combine all this data to determine optimal dynamic price recommendations that are continually updated as new data continues to come in. They then provide you with a price recommendation that optimizes your earning potential in a way that you’d never be able to do yourself.
Many of these services integrate directly with your Airbnb account, meaning you don’t even need to manually update your pricing – they do it for you automatically. These companies then charge a percentage of your Airbnb earnings (approximately 1% of your booking revenue).
In short, dynamic pricing services eliminate the need to figure out how much to charge to achieve optimal prices and occupancy for your place at different times of the week, month and year.
To see an example of how dynamic pricing works for your listing, check out two of the more popular and reliable dynamic pricing companies: Beyond Pricing and Wheelhouse. Both allow you to preview their dynamic pricing tool using your own Airbnb listing.