Definition
Dynamic pricing is a strategy where prices are adjusted in real-time based on demand, competition, and other market factors to maximize revenue. This often occurs in sectors like airlines and hotels, where prices fluctuate based on booking time, seasonality, or occupancy levels.
Common Misperceptions
Some travelers believe that dynamic pricing means prices are always higher, but this isn’t true. While prices can increase during peak demand, they can also decrease significantly during off-peak times or last-minute bookings. Travelers should be aware that monitoring prices can sometimes lead to better deals.
Get the best flight deals on Skiplagged.
