Dynamic Pricing for Short-Term Rentals: Best Tools Compared and How to Choose
How dynamic pricing works for holiday homes and B&Bs, which software to use to automatically update rates on Airbnb, Booking.com and Vrbo, and how to pick the right one for your situation.
A holiday home priced at €150 per night in February and again at peak summer leaves money on the table twice: in winter it sits empty because it's too expensive, in summer it books out months early because it's too cheap. Dynamic pricing solves exactly this: the rate for every night changes based on demand, season, local events and competitor behaviour.
In brief: dynamic pricing software calculates the ideal rate for every night, every day, and pushes it automatically to Airbnb, Booking.com and Vrbo — usually via your channel manager. The most widely used tools are Beyond, PriceLabs and Wheelhouse; AirDNA is primarily a market-analysis platform; Smartpricing is an Italian-built solution; and Airbnb's own Smart Pricing is free but works only on Airbnb. For hosts who want an automatic, hands-off system that charges only when bookings come in, Beyond is the most convenient choice.
This guide explains how dynamic pricing works, which mistakes to avoid and how to choose the right tool based on the number of properties you manage and the time you have.
Why a Fixed Price Costs You Money
A fixed nightly rate hurts short-term rental revenue in two opposite directions at once. Owners who rent for short periods carry fixed costs that run whether the property is occupied or not: utilities, taxes, service charges, maintenance. Every unsold night is a cost — but every night sold at too low a price is lost revenue.
A fixed price gets it wrong in both directions:
- In low season the price is too high relative to demand: your listing drops in search results and the calendar stays empty.
- In high season and around events the price is too low: dates sell out months in advance — a clear sign guests would have paid more.
- On "orphan days" (one or two free nights between two bookings) nobody books unless you lower the rate or reduce the minimum stay.
| Situation | Fixed price | Dynamic pricing |
|---|---|---|
| Low season | Empty calendar | Lower rate to attract bookings |
| High season | Sold out too early at a low price | Higher rate as demand grows |
| Local event (concerts, festivals, races) | No reaction | Automatic price increase on affected dates |
| Orphan days between two stays | Nights go unsold | Discount or reduced minimum stay |
| Last-minute availability | Night is lost | Controlled last-minute discount |
How Dynamic Pricing Software Works
Dynamic pricing software analyses thousands of listings and bookings in your area every day and — starting from the settings you choose — suggests or automatically applies the rate for each night.
The data these tools typically use includes:
- Local demand: how many bookings are coming in and how far in advance;
- Seasonality and day of the week;
- Local and national events and public holidays;
- Prices and availability of comparable competitors;
- Your own calendar pace, to detect whether you're selling too fast or too slowly.
You keep control through a few key rules: a minimum price the tool will never go below, a base price, minimum stay requirements, and discounts for long stays or last-minute gaps.
The best setup runs through a channel manager: the pricing software sends rates to the channel manager, which distributes them across all platforms — no duplicate work. If you're not yet using one, read our comparison of the best channel managers for short-term rentals.
Best Dynamic Pricing Tools Compared
1. Beyond: Fully Automatic and Pay-Per-Booking
Beyond (formerly Beyond Pricing) is one of the pioneers of dynamic pricing for short-term rentals and is built for hosts who want a system that runs itself.
- How it calculates prices: it studies local market demand, seasonality, events and the pace at which your calendar fills, then updates rates daily.
- Host control: you set the base price, minimum price, minimum stays and discounts; you can override individual dates whenever you like.
- Listing analytics: built-in tools flag whether your listing is booking faster or slower than the local average and suggest improvements.
- Integrations: connects directly to Airbnb, Booking.com and Vrbo, and to many PMS and channel manager platforms.
- Cost: the base plan is a percentage of bookings received — no fixed subscription, no activation fee and no contractual lock-in. If you don't get bookings, you don't pay.
Ideal for: hosts with one or more properties who want to automate pricing without spending hours on graphs.
2. PriceLabs
PriceLabs is highly regarded by property managers for the depth of rules that can be configured.
- Strengths: highly advanced customisation (rules for orphan days, events, booking lead time), detailed market reports, extensive PMS and channel manager integrations.
- Limitations: takes time to learn well; pricing is a monthly subscription per listing, charged even in months with no bookings.
3. Wheelhouse
Wheelhouse lets you choose between a more conservative pricing strategy (higher occupancy, lower rates) or a more aggressive one (higher rates, a few more empty nights).
- Strengths: flexibility in both strategy and payment model — fixed subscription per listing or percentage of bookings.
- Limitations: market data is richer in major destinations than in less-visited areas.
4. AirDNA
AirDNA is primarily a short-term rental market data platform, covering average occupancy, rates and seasonality for any given area.
- Strengths: excellent for evaluating an investment or understanding how much a location can earn before buying or furnishing a property.
- Limitations: it is fundamentally an analysis tool; automatic rate updates require separate paid add-on modules.
5. Smartpricing
Smartpricing is an Italian-built dynamic pricing platform, best known among hotels, B&Bs and holiday homes in Italy.
- Strengths: Italian-language interface, local support team and close attention to the Italian market.
- Limitations: fewer advanced rules than the most specialised international tools.
6. Airbnb Smart Pricing
This is the free feature built directly into Airbnb.
- Strengths: free and ready to use immediately.
- Limitations: works only on Airbnb — not on Booking.com or Vrbo — and tends to prioritise occupancy over revenue per night. If you list on multiple platforms, you risk showing different prices across channels.
Comparison Table
| Tool | Type | Automatically updates rates | Cost model | Ideal for |
|---|---|---|---|---|
| Beyond | Dynamic pricing | Yes, on all connected platforms | Percentage of bookings, no fixed fee | Anyone who wants automation and to pay only when bookings arrive |
| PriceLabs | Dynamic pricing | Yes | Monthly subscription per listing | Experienced property managers |
| Wheelhouse | Dynamic pricing | Yes | Subscription or percentage | Those who want to choose their own strategy |
| AirDNA | Market analysis | With dedicated add-ons | Subscription | Evaluating investments and locations |
| Smartpricing | Dynamic pricing | Yes | Subscription | Italian properties wanting Italian-language support |
| Airbnb Smart Pricing | Platform feature | Airbnb only | Free | Hosts listing exclusively on Airbnb |
Which Tool to Choose for Your Situation
| Your situation | Recommended choice |
|---|---|
| One holiday home, limited time to manage pricing | Beyond |
| Multiple properties and desire to fine-tune every detail | PriceLabs |
| You want to decide whether to prioritise occupancy or rate | Wheelhouse |
| Evaluating a property to buy as a short-term rental investment | AirDNA |
| Listing only on Airbnb and want to start for free | Airbnb Smart Pricing, then move to a dedicated tool |
The single most important factor is the cost model. With a fixed subscription you pay even in empty months — in a seasonal destination like the Maremma, that overhead hurts from November through March. With a percentage-of-bookings model, like Beyond's, your cost only rises when your income rises. At very high booking volumes a fixed subscription can actually be cheaper: run the numbers against your annual revenue.
5 Mistakes to Avoid with Dynamic Pricing
- Setting the minimum price too low: the software can drop all the way to that floor — calculate it so it always covers cleaning, linen, platform commissions and fixed costs.
- Ignoring minimum stay settings: two nights at peak summer can block out an entire week; adjust the minimum stay by period.
- Editing prices manually on each platform: this breaks synchronisation — always make changes through the pricing software or channel manager.
- Judging results after one week: dynamic pricing should be evaluated over a full season, comparing occupancy and average revenue per available night.
- Neglecting listing quality: photos, description and reviews matter as much as price; for a breakdown of running costs, read our guide to holiday home cleaning costs for short-term rentals.
Managebnb's Recommendation
For the properties we manage in Grosseto and across the Maremma, we use dynamic pricing connected to a channel manager, with minimum thresholds calculated property by property and manual overrides during peak periods. If you want to understand how much your home could earn, try our earnings calculator, read our complete guide to short-term rentals in Grosseto or explore our full management service, pricing included.
Transparency: the Beyond links in this article are affiliate links. If you sign up, Managebnb may receive a commission at no extra cost to you.
Frequently Asked Questions
What is dynamic pricing for short-term rentals?
Dynamic pricing is a system that changes the nightly rate based on demand, season, local events and competition — rather than applying the same price all year. The goal is to sell more nights in low season and earn more when demand is high.
How much does dynamic pricing software cost?
It depends on the model: some tools, like Beyond, charge a percentage of bookings received; others, like PriceLabs, charge a monthly fee per listing. Airbnb's Smart Pricing is free but applies only to Airbnb.
Is Airbnb Smart Pricing enough?
If you list exclusively on Airbnb, it is a good starting point. If you are also on Booking.com or Vrbo, a dedicated tool that pushes the same rates to all platforms via a channel manager is worth the investment.
Will dynamic pricing push my rates too low?
No — provided you set your minimum price correctly. The software never goes below the floor you define. Calculate it so it always covers cleaning, linen, commissions and fixed costs.
Do I need a channel manager to use dynamic pricing?
It is not strictly required, since most tools connect directly to the major platforms, but with multiple channels a channel manager makes everything simpler and reduces synchronisation errors.
Want to hand over pricing, calendar management and guest communication for your holiday home? Contact us for a free consultation.
