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 Madrid: Real Madrid and Atlético fixtures; IFEMA trade fairs such as FITUR; Mad Cool festival in July; Cultural and business travel year-round. Guests I price for: European and Latin American travellers on 2 to 4 night stays in Centro, Malasaña and Salamanca. Where I start: Trade-fair and match-day premiums, an August strategy that reflects the local exodus, and licensed tourist-flat compliance.
I set your Madrid pricing so IFEMA fairs, football fixtures, Mad Cool and Pride sit as premium dates, August is priced for foreign visitors rather than as peak summer, and the registration number is visible on Airbnb, Booking.com and Vrbo with matching rates.
The service in general is described on my airbnb pricing strategy page; this page covers how I apply it in Madrid.