Dynamic Pricing

Dynamic pricing is a pricing strategy most commonly used in industries like ride-sharing, travel, and e-commerce. Instead of fixed prices, dynamic pricing adjusts the cost of a product or service based on various factors like demand, supply, time of day, or even individual customer behavior. Imagine trying to book a ride with a ride-sharing service during rush hour, and the price is higher than usual because many people need rides at that time – that's dynamic pricing in action. Businesses use dynamic pricing to optimize their revenue, offering lower prices when demand is low and higher prices when demand is high. It's a strategy that aims to balance supply and demand while maximizing profits, but it can sometimes lead to price fluctuations that customers need to be aware of.