What is dynamic Airbnb pricing? It's simply changing the price of an Airbnb unit as the...

What is dynamic Airbnb pricing? It's simply changing the price of an Airbnb unit as the supply and demand for Airbnb units in a market changes. A lot of industries do this. Demand changes for various reasons—such as seasonality and special events. Supply is changing mostly from more Airbnb units being added to the markets, meaning greater competition and less pricing power over time. Within one year, San Francisco had nearly doubled the number of Airbnb units available to guests—that’s double the supply!

Discuss your thoughts and your opinion regarding other industries that are implementing a dynamic pricing strategy.

Expert Solution

Dynamic Airbnb pricing is simply changing the price of your Airbnb unit as the supply AND demand for Airbnb units in your market changes. And boy do they change.

Demand changes for various reasons–seasonality, special events going on, etc.

Supply is changing mostly from having more Airbnb units being added to the markets, meaning greater competition and less pricing power over time. Within one year, San Francisco has nearly DOUBLED the amount of Airbnb units available to guests…that’s double the supply!

A lot can be gained by using dynamic pricing.

According to data from Beyond Pricing, someone with a FLAT pricing plan can stand to gain as much as 43% on revenues. Even very experienced hosts who keep diligent market data and track competitive pricing regularly can expect to gain at least 10% to their revenues.

It’s not easy to price your Airbnb unit on your own and it takes up quite a bit of time and effort that you might not have.

Having a partner like Beyond Pricing that can automatically track all the relevant data for you and adjust your pricing optimally to get you more profits is worth considering if you want more bookings during low season and higher booking rates during high season.

Rahul Sunny answered 2 years ago

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