What is dynamic pricing and its types?


What is dynamic pricing and its types? Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands.


Do airlines use dynamic pricing?

Once upon a time, this question was relatively simple to answer. Airlines set prices for given routes in a particular cabin that didn't change, regardless of when you booked your ticket. Today, however, nearly all airlines use dynamic pricing—that is, they rely on complex algorithms to set fares that fluctuate.


Does Amazon use dynamic pricing?

1. E-commerce: Amazon is the prime example of dynamic pricing in e-commerce. Its algorithms continuously evaluate and adjust prices, ensuring that shoppers receive the best deal possible.