An Airbnb pricing strategy is the set of rules that decide what each night is worth: base, minimum and maximum prices, seasons, events, minimum stays, gap nights, last-minute pricing, length-of-stay discounts and channel markups. The tool applies the rules; the strategy is what makes the tool worth having. Smart Pricing is not a strategy, because it optimizes for Airbnb's fill rate and knows nothing about your events or other channels.
What I plan around in The Faroe Islands: Dramatic coastal hiking such as Mulafossur and Sørvágsvatn; Ólavsøka national festival in late July; Photography tourism; Limited hotel supply. Guests I price for: Nordic and international nature travellers on 3 to 6 night stays. Where I start: Short-season pricing, limited supply and festival premiums.
I configure the pricing tool with the short summer season set apart, Ólavsøka and the G! Festival loaded as events and minimum stays of two or three nights in peak weeks. I also keep the cancellation settings aligned across channels, so a fog-delayed flight does not turn into a dispute.
The service in general is described on my airbnb pricing strategy page; this page covers how I apply it in The Faroe Islands.