Dynamic Pricing in Rural Areas: Should You Use It?

Welcome back to the Hosting Hotline! This is an Ask Me Anything where each week we’ll answer your questions on Airbnb, STRs, real estate, and everything in between.

Jenny asks:

Do you still recommend dynamic pricing even if you’re in a rural area without lots of activities?

When it comes to managing short-term rentals, one of the most powerful tools in your arsenal is dynamic pricing software. But if your property is in a rural area with limited activities or attractions nearby, you might be wondering: is it worth the investment? In this Hosting Hotline episode, we tackle a thoughtful question from Jenny, one of our YouTube viewers, who asked whether dynamic pricing is still useful in these settings.

Spoiler alert: we think it’s a must, and here’s why.

Why Dynamic Pricing is Essential—Even for Rural Properties

Dynamic pricing tools, such as PriceLabs, are designed to help hosts maximize revenue by analyzing market trends, demand, and competitor pricing. While it might seem like these tools are better suited for urban or tourist-heavy areas, rural properties can benefit just as much. In fact, these tools can uncover hidden opportunities that you might not even know exist.

For example, even if there’s just one event or seasonal draw in your area, dynamic pricing ensures you’re capturing the peak revenue potential. Plus, these tools help keep your rates competitive, ensuring you’re not leaving money on the table during high-demand periods—or underselling during slower seasons.

The Importance of Competitor Analysis

If you’re in a rural area with few competitors, it might feel like pricing software isn’t necessary. However, we argue the opposite. By plugging into dynamic pricing, you can get a clear picture of your local market—whether it’s identifying seasonal peaks or learning what travelers value most in your area.

For properties with just a few nearby competitors, you can use pricing software to set yourself apart. If your competitors aren’t using dynamic pricing, you’re already one step ahead by ensuring your rates reflect real-time demand. And if they are using it, staying competitive becomes even more crucial.

Hidden Demand: Events and Activities You Might Not Know About

One of the most exciting benefits of dynamic pricing is its ability to identify demand drivers you might not be aware of. Even in rural areas, there are often niche events, annual festivals, or seasonal activities that attract visitors. Dynamic pricing tools help you identify these trends and adjust your rates accordingly.

Think about it: even a single annual event can double or triple your revenue for a specific week. Without a tool like PriceLabs, you might miss these opportunities entirely.

Start with a Free Trial

For those still hesitant, we recommend starting with a free trial. PriceLabs, for instance, offers a 30-day trial without requiring a credit card. This gives you a chance to experiment with the platform, compare its recommendations to your own, and see how it aligns with your strategy.

Remember, dynamic pricing isn’t a set-it-and-forget-it solution. It’s a tool that requires some tweaking and ongoing attention, but the payoff can be immediate and long-lasting.

Dynamic pricing is one of the first tools we recommend to short-term rental hosts, no matter the location of their property. It’s an investment that can deliver an immediate return by helping you price smarter, maximize your revenue, and remain competitive in your market—even in rural settings.

So, Jenny, our answer is a resounding yes: give it a try! The insights you gain will be invaluable, and you’ll likely uncover revenue opportunities you didn’t even know existed.

Download a transcript of this episode.

Resources:

• PriceLabs

• Video: The Ultimate Airbnb Tool Kit: What We Use to Keep Things Running Seamlessly

• Airbnb Essentials Checklist: hostchecklist.com