As an Airbnb host, your priority is to maximize your earning potential, as opposed to providing cheap rental accommodation options for guests. Any price tip recommendations 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 tool, dynamic pricing companies have emerged to provide this specific service.
These companies dynamically…
Monitor prices and occupancy rates of your local competition
Research key events in your area that impact supply and demand
Consider seasonality factors
As well as day of the week factors
And 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 so 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.
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.
These companies charge either a percentage of your Airbnb earnings (typically ranging between 0.5% to 2% of your booking revenue) or a monthly fee (typically between $15-$30 per month).