Dynamic Pricing Strategies

Dynamic pricing strategies involve adjusting the prices of products or services in real time based on various factors such as demand, supply, customer behavior, and market conditions. Companies use this approach to maximize revenue by charging higher prices during peak demand periods and lower prices during off-peak times. For example, airlines and ride-sharing services frequently adjust their fares based on how many people are looking to book a flight or a ride. This tactic helps businesses respond quickly to changes in the market, ensuring that prices reflect current conditions and consumer willingness to pay.