New Airbnb tool helps hosts figure out how much to charge

The company is also making some of its machine learning software open source

Mike Curtis, VP of engineering at Airbnb, speaking during the company's OpenAir summit in San Francisco on June 4, 2015.
Mike Curtis, VP of engineering at Airbnb, speaking during the company's OpenAir summit in San Francisco on June 4, 2015.
  • Mike Curtis, VP of engineering at Airbnb, speaking during the company's OpenAir summit in San Francisco on June 4, 2015.
  • Airbnb's logo, at the company's headquarters in San Francisco.
  • Tagline is AirBnB's new price tips tool
  • Tagline is AirBnB's new price tips tool
  • Tagline is AirBnB's new price tips tool
View all images

Roughly half a million people now stay in AirBnB accommodations worldwide each night, double the number from a year ago. But a big question AirBnB hosts wrestle with is how much they should charge their guests.

AirBnB is releasing a new tool Thursday called Price Tips to help answer that question. It looks at a range of signals, including seasonality and the unique features a host has to offer. It also looks at demand, so if there's a big conference in town, the tool will suggest a higher price.

Price Tips can also tell a host how likely it is their property will be booked at various price levels. The tool will be available Thursday in the calendar section of Airbnb's website.

In its tests, Airbnb found that if hosts set their price to within 5 percent of the recommendation, they're 5 times as likely to receive a booking, Mike Curtis, vice president of engineering at Airbnb, told reporters at the company's OpenAir event in San Francisco.

It's the second time AirBnB has hosted the annual event, for engineers and third-party developers. Roughly 800 people attended, up from 300 last year.

Price Tips is based on machine learning and data analysis technology that AirBnB has been developing. The company sits on a wealth of data about how people search for and book places to stay, and it's only just starting to make full use of it.

On Thursday it said it will open source some of the software that underpins its machine learning system. Called Aerosolve, the software has been posted to the GitHub software repository.

AirBnB uses it for a variety of purposes including fraud prediction and ranking search results.

Last year, it began analyzing its hosts' preferences for bookings, such as if they prefer frequent but shorter stays. Now, when travelers search Airbnb's listings, the company presents results based partly on what sorts of bookings the hosts prefer.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

Very rarely have I come across views so true. There are so many gems in this article, reflective of reality, onec can read it again and a...

Shyam Mishra

ANZ digital chief: Tackle the ‘frozen middle’ of your organisation or face irrelevancy

Read more

STOP STEALING BUISNESS CLASS TOILETS from A380, new 787's and A330's!!!!Thats what you call customer experience ONE toilet for all Busine...

Joe

Qantas CMO: What it's taking to evolve our customer experience

Read more

Dare i suggest that a "CEO" role in a peak industry body like Think Brink is not really much of a leap from CMO because it is also a mark...

Sventana

CMO to CEO: Think Brick chief reveals what it takes to make the jump

Read more

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Latest Podcast

More podcasts

Sign in