Dynamic Pricing

                       
Dynamic pricing means to tailor the prices of goods or services for specific customer preferences.
 

Dynamic Pricing Examples

    Airline prices going up due to high demand
    Hotel rooms on discount when travelling during an off season
    Ridesharing services charging 2x the normal amount during high traffic times

Deeper Insights

In order to have effective dynamic pricing, it is imperative to accurately study demographics and market conditions. Due to the difficulty and amount of time needed to customize prices, this technique is usually not used by a wide range of industries.

 

That being said, dynamic pricing is heavily reliant on supply and demand. The main industries which use dynamic pricing are the transporation and hospitality industries. 

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Related Keywords: Price DifferentiationValue-Based PricingPerceived ValuePricing Strategy

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