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
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.