Does anyone use VRBO or Airbnb dynamic pricing?

[Troy F.]

I'd like to know if hosts are using the dynamic pricing tool on Airbnb and VRBO.  If so, do the suggested prices seem to be paying off?  

I update my prices weekly, adjusting just a bit here and there according to my own research. If I accept the suggested pricing opportunities it could drop my rates by $100 / night in some cases.  However, leaving them where they are I feel like I'm missing out on bookings. 

[Ryan Moyer]

Airbnb dynamic pricing has ruined the whole industry.

Airbnb's dynamic pricing isn't designed to get YOU a booking.  It's designed to get AIRBNB a booking.  Because Airbnb only makes money when the guest books on Airbnb.

Hence, they want the price to be cheapest on their platform, so people book on Airbnb instead of elsewhere, and want their properties to be able to compete with hotel prices (even after cleaning fee and service fees).  That means their pricing tool is designed to price beneath the rest of the market, which drags the entire market down, especially when combined with their algorithm changes a couple years ago that made pricing (IE lower prices) the #1 factor in ranking.

Even if you use an external pricing tool, it gets dragged down by the people using Airbnb's pricing.  But at least you have a chance, and aren't exacerbating the problem as much.