by Turo
posted on 16 October 2025
Price is one of the most critical factors for success on Turo, but until recently, finding the right price for a vehicle typically involved a bit of guesswork. Once set, the majority of hosts don’t adjust their price in response to changes in seasonal demand.
Starting early 2026, it will be easier for Turo hosts in Australia to price competitively and maximise their earnings, thanks to dynamic pricing, a sophisticated pricing algorithm designed by our data scientists.
How dynamic pricing works
Dynamic pricing calculates the optimal daily rate for your car by balancing price with booking probability. It considers:
- Your vehicle’s make, model, fair market value, etc.
- Real-time guest searches
- Past booked prices and utilisation for your vehicle and similar vehicles
- Supply and demand forecasts for your local market, factoring in daily demand patterns and seasonal trends
- Host costs
- Other proprietary factors
While some hosts might feel confident in the prices they choose on their own, dynamic pricing accesses data that hosts can’t. With dynamic pricing, your recommended daily prices rise and fall in response to this data.
Once dynamic pricing has launched, your default prices will be updated to the dynamic pricing recommendations tailored to each vehicle.
You’re in control
You can always change prices set by dynamic pricing. If you think the price should be different based on your local market knowledge or utilisation goals, you can easily change it for a specific day or as many days as you want in the calendar in the “Trips” tab.
For example, if there’s a special event in your location that you think will increase demand but dynamic pricing hasn’t recommended higher prices, you can change your prices to what you think is more appropriate during the event.
Look ahead with the new “Future prices” chart
The new “Future prices” chart, which will show the current dynamic pricing recommendations for the next 90 days, is launching at the same time as dynamic pricing and will give you a better overview of how dynamic pricing fluctuates over time. Prices are updated daily, and you’ll be able to see how dynamic pricing changes over time and how it compares to any custom prices you’ve set, offering useful pricing insights.
Common questions about dynamic pricing
Hosts who have been on Turo for some time might feel confident in their vehicles’ performance and wonder why they should change a strategy that’s been working. Let’s look at some questions from hosts.
“Do lower prices mean lower earnings?”
Dynamic pricing is designed to help hosts price competitively and maximise their earnings. In the US, Canada, and the UK, where dynamic pricing launched last year, cars priced close to the dynamic price are booked nearly twice as often as those priced 20% higher. In fact, 75% of trips were booked at or below the dynamic price, showing that competitive pricing leads to more bookings and can result in higher overall earnings.*
You’ll spot lower prices on low-demand days to increase the likelihood of bookings and trip extensions. On popular dates, the dynamic pricing recommendation will increase your daily rate — perhaps even above what you thought you could charge, helping boost your overall profitability.
“How well does dynamic pricing know my local area?”
Local knowledge is important. Dynamic pricing takes the location of your car into account, drawing on historical and real-time data from your area. It also looks at data that hosts can’t access directly, such as information about makes, models, and seasonal demand patterns.
“Can I trust dynamic pricing?”
The concept of dynamic pricing isn’t new. It’s a trusted technique to optimise pricing at any given time, whether raising or lowering prices. The Turo pricing algorithm aligns closely with fresh market data about what, where, and when guests are booking.
How to access dynamic pricing
At launch, default prices on your calendar in the “Trips” tab will reflect the dynamic pricing recommendation. Any custom prices you’ve set will stay the same. In addition to dynamic pricing, the calendar in the “Trips” tab is your go-to spot for pricing tools like monthly booked price trends and the future prices chart.
Stay tuned
Look out for updates in the coming months to learn when you can start taking advantage of dynamic pricing and its more sophisticated pricing recommendations. We’ll give you plenty of advance notice for these changes.
*Internal Turo data based on trips in the US, Canada, and the UK, booked between 1 January 2025 – 13 October 2025
