Column: Why I Never Use Airbnb’s Smart Pricing

January 28, 2020

[Column written by Ade Brown]

One of the most common questions I get asked is whether or not to use Airbnb’s pricing tips. Don’t! This is a very common mistake that new hosts make, even myself. I fell victim to Airbnb’s pricing band. While using smart pricing was great in getting my calendar filled, it was horrible for my property’s revenue due to the absurdly low rate.

After realizing my mistake, it was already too late and to add insult to injury, it was during high season! Thankfully, I did not cancel any of these bookings so I did not incur any penalties which would have destroyed my listing’s search rankings. However, I did learn from the experience and I’m much better off for it.

You see, Airbnb is a two-sided marketplace, relying on both Hosts and Guests. As the platform becomes more mature, there will be less concern for the growth of listings while there will be a more concerted effort to drive the growth for guests booking through the platform.

Ask yourself, “Who stands to benefit most from Airbnb’s Smart Pricing Tips?”

Remember, although the short-term rental market is going through a massive wave of growth, its industry that is well established. Airbnb must compete against the likes of and Expedia along with the hundreds of partner sites that they own. This competition drives prices lower in an attempt to lure guests to the Airbnb platform. This is why I stay well clear of Airbnb’s Smart Pricing Tips, and you should too.

What are Airbnb price tips good for?

All is not lost. Although I do not base my pricing off these tips, they do give you an indication of what pricing would put you near the top of the search rankings. You can monitor your search rankings daily using Airbnb’s market report feature. It’s been an invaluable tool for me to reach high occupancy rates most months out of the year.

So, now what?

Ever consider using a pricing tool? There are paid pricing tools on the market that are vested 100% in you as the Host in maximizing your occupancy at the best possible rates. If you are interested in looking at comparable properties, have a look at which provides analytical insights on Bermuda’s short-term rental industry.

If you would like to know more, please read our article on how to price your Airbnb or contact me directly at Alternatively, find us on Facebook and see how we can maximize your property’s earning potential.

- Ade Brown is a co-founder of AirHandled, a start-up company that aims to provide linen-for-hire, cleaning, supplies and management services; catering to short term rental properties that list on websites like Airbnb, TripAdvisor, and


20 Most Recent Opinion Columns

Opinion columns reflect the views of the writer, and not those of Bernews Ltd. To submit an Opinion Column/Letter to the Editor, please email Bernews welcomes submissions, and while there are no length restrictions, all columns must be signed by the writer’s real name.

click here banner Bermuda tourism

Read More About

Category: All, Business

Comments (1)

Trackback URL | Comments RSS Feed

  1. Another bonus of not using the Airbnb Smart Pricing (although I’ll say it has gotten a LOT better in recent months) is that you can use a little-known pricing hack to get more clicks which positively affects your search rank. I explain how to implement it here: