Silicon Valley's second-highest-valued start-up — Airbnb — is rolling out dynamic pricing tips known as smart pricing for all hosts on its platform this week. Hosts that enable the system boost revenue by 13 percent on average, according to Joe Zadeh, vice president of product at Airbnb.
"That is one of the great things about our marketplace and our business model," said Zadeh. "Our business scales with them."
Airbnb takes a percentage of all transactions, so the company expects revenue to rise with wider adoption of the program. Airbnb collects 3 percent from hosts and 6 to 12 percent from guests.
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