But it’s not just big providers that may struggle with setting the right price. Airbnb hosts face the same uncertainty in how to set flexible listing prices in response to changing market demands. The fancy economic term for this dilemma is “dynamic pricing,” and several startups, along with Airbnb itself, have tapped into the market.
One of the startups working to bring dynamic pricing to the masses, Wheelhouse, builds its pricing model on “over two dozen factors,” according to its help page. These attributes include records of local rental markets, hotel prices, and recent events, as well as past performances of hosts’ listings, listed photos, additional fees, and amenities of specific properties.
“We calculate the fair price of a given property on a given day, and that is the price for everyone,” Wheelhouse’s CEO Andrew Kitchell wrote in an email to Crunchbase News.