Glossary
Dynamic pricing
Dynamic pricing means your nightly rate changes by date, based on demand, season, day of week and how close the date is. It can be done by a tool, by hand, or both.
Examples on this page use made-up homes and numbers to show the method. They are not client results.
How it works
A dynamic pricing tool starts from a base rate and moves each night up or down. Typical inputs are the season, weekends, local events, how many similar homes are still free, and how far away the date is.
Airbnb has its own built-in option. Third-party tools can also price Vrbo and other platforms from one place.
The settings that matter most
- Minimum price. The lowest you will accept. Without one, a tool may fill your calendar at rates that do not cover cleaning and wear.
- Maximum price. Mostly a safety limit.
- Base rate. The anchor everything else moves around. If it is wrong, every night is wrong.
Example
Imagine a home with a $200 base rate. It might be priced at $170 on a February Tuesday, $240 on a July Saturday and $320 on a holiday weekend.
Common mistakes
- Turning a tool on and never setting a minimum price.
- Editing individual nights by hand; some tools then stop adjusting those nights.
- Pricing Airbnb dynamically and leaving Vrbo on a flat rate, so one platform is always cheaper.
Put it to work
- Guide: Is Airbnb Smart Pricing pricing you too low? Set a floor first
- Service: Co-Hosting, where we set and review your rates, minimum stays and gap nights for you, with nothing to pay upfront.
Related terms
Ready to go hands-free?
Send us your listing and get a written co-hosting proposal. Nothing to pay upfront: Airbnb pays our share only when you are booked.