What Is A Smart Pricing Algorithm In Airbnb? How Does It Work?
Airbnb Clone is a familiar platform to launch a rental marketplace in a smart way. The key players are hosts and guests. Attain maximum revenue is an essential one and it requires competitive price bidding and optimization of listings. The improvement of listing revenue performance demands “dynamic pricing”.
The smart pricing algorithm in Airbnb is a fruitful option to increase your revenue. This enables the admin to set the best price for the listings. With this option, hosts can compare their own listing price with other pricing in the local region. The ultimate aim of the set-up of smart pricing is to increase the profit values.
The “smart pricing” updates the listing price according to the market demands. The ranges of pricing lie within minimum and maximum values. The smart price based on this feature allows the business owners to examine the location, size, amenities list and quality of listings.
Factors Suggesting The Price For Listing
When the smart pricing is turned on, your pricing is combined with a lot of factors that change your pricing range. The factors are listed as follows:
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Based on the regular bookings and the popularity of the market, lowering price values brings a great appeal to your platform.
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On the basis of the number of views and the bookings in the list, and the popularity of the bookings, the price value gets updated.
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Based on adding amenities like WiFi, pets allowed, your price will be updated for the listing.
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Based on the high season, your listing price will be updated.
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Your prices will update based on your positive reviews from successful stays.
How Does It Work?
Smart pricing works as an algorithm. When the hosts turn this algorithm on, the adjustment of the property’s night rate depends on various factors: nature of the property, seasonal bookings, price value by neighbouring properties. The suggestion of this new price increases the bookings from the host listings.
Settings For Host
In general, the suggestion of the smart price lies within the minimum and maximum ranges.
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On selecting a minimum price, you can set the lowest price for your space to attract more guests but never set your price below the threshold value.
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If it is the maximum value, you can set the highest price of your listing per night, every listing which uses the same price value.
Airbnb is always adding flexibility to smart pricing and it has the ability to turn off. But, it’s for some certain days only. This feature is really effective for the host to get more profit. To get this feature for your rental site, Click here.
