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Dynamic Pricing Simulator

Stop leaving money on the table. Simulate seasonal adjustments, weekend premiums, and event surges to see how dynamic pricing could boost your annual revenue by 20-40%.

How Dynamic Pricing Works

The $18,000 difference. That's how much more I made in 6 months after switching from static to dynamic pricing. Read the full experiment in my Airbnb Pricing Strategy Guide.

Dynamic pricing adjusts your nightly rate based on multiple factors:

FactorTypical AdjustmentWhen to Apply
Weekend Premium+15-25%Friday & Saturday nights
Peak Season+25-40%Summer, holidays, high-demand periods
Low Season-15-25%Winter, off-peak months
Local Events+50-100%Concerts, festivals, conferences
Last-Minute-10-20%Within 3-7 days of check-in

Why Static Pricing Leaves Money on the Table

With static pricing, you're charging the same rate whether it's a Saturday in July or a Tuesday in February. Here's what happens:

  • Peak season: You book instantly, meaning you priced too low
  • Low season: You sit empty, meaning you priced too high
  • Events: You miss 50-100% surge opportunities
  • Last-minute: Empty nights stay empty instead of filling at a discount

The goal isn't to charge the highest price—it's to charge the right price for every single night.

The 32% Revenue Increase

In my 6-month A/B test, dynamic pricing increased revenue from $21,060 to $36,960—a 32% gain. The dynamically-priced property earned $18 more per nightAND had 4% higher occupancy.

Best Pricing Tools for Automation

Manual pricing works, but it takes 5-10 hours/month. These tools automate the process:

  • PriceLabs – My recommendation. $19.99/month, excellent event detection, 15-25% revenue lift
  • Beyond Pricing – Similar features, slightly higher cost
  • Wheelhouse – Good for beginners, simpler interface
  • Airbnb Smart Pricing – Free, but often underprices significantly

For a detailed comparison, see our 7 Best Pricing Tools for Airbnb Hostsand PriceLabs vs Beyond Pricing comparison.

Seasonal Pricing Strategy

Peak Season (June–August)

  • Increase base rate 25-40%
  • Implement 3-night minimum stays
  • Book 60-90 days in advance at premium rates
  • Surge 50-100% for July 4th, Memorial Day, Labor Day

Shoulder Season (Spring/Fall)

  • Keep base rate flat or +10%
  • Target long weekends and local events
  • Use 2-night minimums on weekends only
  • Offer direct booking discounts for repeat guests

Low Season (December–February)

  • Decrease base rate 15-25%
  • Remove minimum stay requirements
  • Aggressive last-minute discounts (15-20% within 3 days)
  • Consider monthly discounts for medium-term guests

Frequently Asked Questions

How often should I adjust prices?

With automated tools, prices adjust daily based on market data. If manually adjusting, review weekly (30 min) and make changes for the next 30-60 days.

What occupancy rate should I target?

Aim for 70-85% occupancy. Below 70% means you're priced too high. Above 85% means you're likely underpricing. The sweet spot maximizes revenue per available night.

Should I price higher or focus on occupancy?

Neither—focus on revenue per available night (RevPAN). A $150/night at 60% occupancy ($90 RevPAN) is worse than $120/night at 80% occupancy ($96 RevPAN).

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