Financial education and investment

Dynamic pricing

Dynamic pricing

There was a pricing model a few decades ago that has become commonplace today: Dynamic pricing. This model has made fixed pricing likely to become an old-fashioned category in the near future. Dynamic pricing is more common in airlines and some businesses.

For example, we can see that hotels are pursuing a policy of price increases during the peak travel season… Or transportation companies like Uber, raise fares during peak hours. What is important about dynamic pricing?

Its most important use is for near-expiration products and seasonal services. In this case, you can reduce the prices automatically. The next utility of this method is for companies that seek to solve community problems. For example, a restaurant in the lower part of the city can apply dynamic pricing. That is, according to the first economic conditions of the region, reduce prices.

Another example is EasyJet, The Company, due to the declining purchasing power of the people. Launched the airline, which is used for the weak class and for short distances. The cost reduction is such that the company has announced that it only serves oxygen and has eliminated catering.

In the new economic model, due to the reduced purchasing power of the people. Winning companies are those that have fair prices, full service, product and product diversity, and trained staff dynamically.

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