Airbnb has introduced a new pricing feature that fluctuates with supply and demand, following in the footsteps of the more traditional hotel model and Uber’s price surging system.
Announced at the Airbnb Open event over the weekend, the ‘smart pricing’ system will automatically set a renting price for the host based on the supply and demand in the surrounding area, as Tech Crunch reports.
This will be based on a number of factors, including the location, time of the year, big events nearby and historical data from the area.
It’s much more in line with how pricing works at a traditional hotel but, unlike Uber’s pricing, hosts will be able to set a minimum and maximum price and don’t have to use that feature at all.
Uber’s pricing is often controversial, with fairs increasing drastically at times during emergencies, but this is something Airbnb won’t likely have to face.
It’s an extension of the price tips feature that was rolled out earlier this year, which helps suggest a rent price for the host. With the advent of this feature, Airbnb says revenue has increased by 13%.
At the same event, the startup also introduced Airbnb for Business, where hosts can get themselves a ‘business travel ready’ badge if their space has Wi-Fi, space for work, iron and hair dryer and a stricter policy on cancellations.