Static pricing vs dynamic pricing: why the difference is worth thousands of euros

One of the most costly mistakes that owners who manage Airbnb independently make is setting a fixed price and leaving it unchanged for months. The short-term rental market is dynamic by definition: the same night in an apartment in Milan can be worth 80 euros in January and 250 euros during the Salone del Mobile. Losing this spread means leaving money on the table every day.

Dynamic pricing: how it works

Dynamic pricing involves adjusting rates in real time based on market demand, remaining availability in your calendar, local events, seasonality and the performance of nearby competitors. Airbnb itself offers a Smart Pricing tool, but it tends to optimize for occupancy (and therefore pushes prices down) rather than total revenue. Professional property managers use dedicated software (Pricelabs, Wheelhouse, Beyond Pricing) that analyzes hundreds of variables to maximize revenues and not just fill the calendar.

How to establish the correct base price

The base price is the starting point from which multipliers are applied. To calculate it: analyse direct competitors (same neighbourhood, same property type, same capacity) and initially position yourself in the 40thโ€“60th percentile of the local market; then adjust based on actual performance (if occupancy is above 80%, you can raise the price; if it is below 60%, lower it). The base price is not the average price: it is the floor below which your listing should not fall.

Multipliers: when to raise prices

Set premium prices (1.5x-3x multiplier compared to the base) for: weekends, national holidays and long weekends, confirmed local events (concerts, fairs, matches, festivals), summer high season. Set discounts (0.7x-0.9x) for: weekdays in low season, last minute more than 7 days in advance if the calendar is still empty, long stays (5+ nights). Calibrating these multipliers requires experience and constant monitoring of the local market.

How to set base rates and multipliers for events and seasons

Professional dynamic pricing is one of the main reasons why owners who outsource management to YouBnb they systematically earn more than the market average. Request one Free Evaluation and discover the potential of your property.

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