Should You Use STR Dynamic Pricing Tools?

Explore whether dynamic pricing tools are right for your business strategy.

Introduction

Pricing your Airbnb or short‑term rental listing manually can feel like shooting in the dark. Are you leaving money on the table or turning away bookings at too high a price? Enter dynamic pricing tools—software that adjusts your nightly rate based on demand, seasonality, special events, and local supply.

In this post, we’ll explore what these tools are, how they work, and whether Airbnb's dynamic pricing tools are right for your hosting strategy.

What Are STR Dynamic Pricing Tools?

Dynamic pricing tools are third‑party platforms (and Airbnb’s own Smart Pricing) that use algorithms and machine learning to automatically adjust rental rates in real time. These tools analyze data such as:

• local market demand and occupancy trends,

• competing Airbnb rates in your area,

• seasonal and day‑of‑week patterns,

• upcoming events or holidays in your region, and

• your personal pricing rules (min/max rates, length‑of‑stay adjustments).

According to Lodgify’s guide on dynamic pricing, these tools automate pricing adjustments throughout the year to boost bookings and revenue.

Why Hosts Use Dynamic Pricing Tools

Benefits of Automation & Accuracy

Using a tool saves hours of daily manual price tweaking. As one resource puts it: “Dynamic pricing software automates this time‑consuming process with less time and effort required on your part.”

Better Revenue, Better Occupancy

While Airbnb’s Smart Pricing is free, it tends to skew prices lower to maximize occupancy. Many hosts prefer tools like PriceLabs and Beyond Pricing, which aim for revenue optimization, not just full calendars.

Hosts using PriceLabs report better bookings and income thanks to pricing that automatically adapts to events and seasonality.

Dynamic pricing tools use algorithms to determine rental rates.

Top Dynamic Pricing Tools Compared

Here are four leading STR dynamic pricing tools for hosts:

PriceLabs

• Highly customizable: set occupancy- or booking‑window‑based rules, orphan‑day discounts, length‑of‑stay adjustments;

• Integrates with Airbnb, Vrbo, Booking.com, and over 100 PMS systems;

• Pricing starts around $19.99/listing/month after a 30‑day trial. 

Beyond Pricing

• AI‑driven adjustments based on seasonality, day‑of‑week, and events;

• Works across Airbnb, Vrbo, and PMS platforms;

• Charges a 1% fee on bookings rather than a flat subscription; offers a 30‑day trial.

Wheelhouse

• Offers three adjustable pricing strategies: recommended, aggressive, and conservative;

• Daily rate updates using local data and competitor benchmarks;

• Can boost profitability by up to ~40%, according to user reports.

AirDNA Smart Rates

• Backed by market data across entire regions, tiers include conservative, balanced, and aggressive pricing;

• Minimal integration: manual rate entry unless you use Futurestay;

• Pricing from $12–99/month, depending on market coverage; free limited version available.

When Dynamic Pricing Tools Make Sense

• You're managing multiple listings – automation saves time and scales better than manual updates.

• Your goal is maximum profitability – tools like Beyond and PriceLabs target revenue over occupancy.

• Your market is variable – if your area has fluctuating demand or frequent events, automation keeps you competitive.

• You want market insights – some tools (e.g., PriceLabs, AirDNA) offer dashboards to help you evaluate neighborhoods and occupancy trends.

Potential Downsides to Consider

• Cost – subscription fees or commission-based models mean tools eat into your margins.

• Technical glitches or mismatches – automatic pricing may occasionally set rates too high or too low without manual oversight.

• Learning curve – fine‑tuning rules and resistance levels takes time, especially with highly flexible tools like PriceLabs and Wheelhouse.

• Dependence on data accuracy – local disruptions or short‑term anomalies may mislead automated pricing decisions.

How to Decide: Should You Use One?

1. Evaluate your hosting goals – prioritize fast bookings or higher overall profits?

2. Test Airbnb Smart Pricing first – it’s free and easy to set up if you’re just starting.

3. Try a tool with a free trial – PriceLabs, Beyond, and others offer 30‑day trials so you can compare analytics and revenue impact.

4. Monitor performance – track occupancy rates, revenue per available night (RevPAR), and listing visibility over time.

5. Adjust as needed – tweak minimums, adjust aggressiveness, or switch tools based on results.

   
   

Helpful Resources & Links

• A detailed comparison of AirDNA vs PriceLabs.

• A comprehensive review of the 4 best dynamic pricing tools for short‑term rentals.

• Side‑by‑side comparison of Airbnb pricing tools in 2025.

• Overview of smart pricing and limitations of Airbnb’s own Smart Pricing.

• Guide to implementing dynamic pricing in your STR strategy from Rentals United.

Dynamic pricing tools help you fine-tune your pricing structure and prioritize long-term profits.

Conclusion

Dynamic pricing tools—especially those tailored for Airbnb’s dynamic pricing tools—offer a powerful way to optimize revenue, reduce manual labor, and stay competitive in evolving markets. For hosts managing multiple listings or prioritizing long‑term profitability, tools like PriceLabs, Beyond Pricing, Wheelhouse, or AirDNA Smart Rates are well worth exploring. 

Start with Airbnb’s free Smart Pricing, compared with a paid tool’s free trial, and base your choice on real data. Your pricing strategy doesn’t have to live stuck on one static nightly rate – it can adapt, evolve, and drive higher income with the right tools.