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The Importance of Using an Airbnb Pricing Tool

Dynamic pricing has been around for years in industries like aviation, hospitality, and e-commerce, and it’s starting to spread. Hosts and property owners are overwhelmed with choice when it comes to choosing an Airbnb pricing tool. But the question is – what benefits does the use of an Airbnb pricing tool offer?

Increased Occupancy

By optimizing the price of your listing, your dynamic pricing engine secures more bookings, which results in higher levels of occupancy. This functionality is especially important in off-peak seasons when bookings are few and far between.

Occupancy is a great indicator of business performance. If your occupancy rates are low and you’re due a renovation of your property or think you need to invest more money on upgrades, low occupancy rates should send a warning through your mind.

This is where access to market data comes in.

Access to Critical Market Data

Continuing on the point above, if your occupancy rate is extremely low, and you cannot figure out why then the problem could be with the greater local market rather than with your listing specifically.

Being able to access this type of data really is critical to running an optimized, successful short-term rental business. Using an Airbnb pricing tool is the easiest way to access these sorts of data insights, and the better ones also offer data analysis and automated pricing strategies.

Not every Airbnb pricing tool requires a membership in order to grant access to local market data. Dynamic pricing engine DPGO created ‘Markets by DPGO’ to allow even non-DPGO users to use the data they collected to turbocharge their Airbnb success. All you need to do is visit DPGO’s Markets Page, enter the name of your town (if that town is in the United States or Canada), and enjoy a selection of local market insights, including average daily rate, average occupancy rate, market supply, day of the week pricing factor, and more, for free!

Increased Revenue

It goes hand-in-hand with increased occupancy rates, but not in a straightforward manner that you might initially suspect. Some businesses aim for 100% occupancy, but most can only achieve that by dropping their prices. By doing this, they do indeed achieve a very high occupancy rate, but their revenue and associate profit are both minimal.

For the vast majority of hosts, profit is the main aim, so there needs to be a balance of both aims in order to achieve a positive profit.

Optimized Operations

Using any of the Airbnb optimization software on the market offers hosts the ability to take a much more relaxed approach to property management. Pairing your Airbnb pricing tool with a property management system takes the pain and stress out of running a short-term rental property.

Higher Rank in Airbnb Search Results

Airbnb search ranking is a complicated thing to decode, but we know for sure that there are a few key factors that directly affect where your property ranks. Airbnb itself remains relatively silent on the issue, but their Help Centre does say “We consider things like the number of five-star reviews, price, location of the listing if Instant Book is turned on, how

quickly the host of the listing responds to requests and many other factors.”

We know for sure that your response rate affects where you rank, but what Airbnb will not disclose is whether more popular listings rank higher in search results. If you think about it logically, this simply must be considered by Airbnb. How often do you see the most professional-looking listing first in your search results? These high-ranking listings may not always be the most expensive, but they are often the most impressive of the results.

Optimizing your listing with an Airbnb pricing tool is a great way to streamline the running of your listing and help you rank higher in Airbnb search results.

Airbnb Superhost Status

Becoming an Airbnb superhost is another great way to increase the success of your business and it is yet another area that using an Airbnb pricing tool can help! To become a superhost, you need to have met the following criteria, as stated by Airbnb: completed 10 trips OR completed 3 reservations that total at least 100 nights, maintained a 90% response rate or higher, maintained a 1% percent cancellation rate, and achieved a 4.8 overall rating.

Superhost status is said to increase occupancy rates, as guests trust superhost status and will usually opt to pay slightly higher prices for the assurance that their rental will meet their expectations. Achieving superhost status is made easier when you make use of optimization software like an Airbnb pricing tool as the everyday running of your listing is simplified and made easier than ever!

Link to PMS Systems

Most Airbnb pricing tools have connectivity capabilities with property management software vendors like IGMS, Hostfully and Hostaway. Not only does this allow two management systems to work together, but it also streamlines the management of your Airbnb and offers greater potential for growth.


Property management systems are the main tools of choice for optimizing any short-term rental property, but Airbnb pricing tools, like DPGO, work in conjunction with PMS systems and automate dynamic pricing changes.


Using a dynamic pricing tool can mean the difference between success and failure in the short-term rental industry. Most pricing tools on the market offer free trials, so there really is nothing to lose by giving it a try. Be sure to set a minimum price and see where these pricing software providers can take you.


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About the Author

Kaya Wittenburg

Blog Author and CEO

Kaya Wittenburg is the Founder and CEO of Sky Five Properties. Since the age of 10, real estate has been deeply ingrained into his thoughts. With world-class negotiation and deal-making skills, he brings a highly impactful presence into every transaction that he touches.

He is here to help you use real estate as a vehicle to develop your own personal empire and feel deeply satisfied along the way. If you have an interest in buying, selling or renting property in South Florida, contact Kaya today.

Feel free to call me at: (305) 357-0635
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