Next-generation price recommendation with LLM-augmented graph transformers

Dynamic pricing on two-sided platforms such as Airbnb presents complex challenges due to the heterogeneity of listings, user behaviours, and contextual variables. In this work, we propose a robust and interpretable pricing framework that leverages Large Language Models (LLMs) and prompt engineering to automate the generation of high-level meta-features from unstructured and structured listing data. These meta-features are designed to capture nuanced semantic features that are often overlooked by traditional feature engineering pipelines. We further integrate these representations into a Transformer-based Graph Neural Network (GNN), which models the relational and spatial dependencies between listings in a data-driven and several relation-construction manner. By combining prompt-driven embeddings with graph-aware contextual learning, our framework significantly enhances price recommendation accuracy while offering transparency through assortativity analysis. Extensive experiments on real-world Airbnb datasets demonstrate our approach's performance in both prediction and unseen data across neighbourhoods and output interpretability. This work highlights the potential of unifying LLMs, structured graph learning, and interpretable AI for next-generation dynamic pricing systems.