Dynamic Pricing in Different Industries

Abstract

Dynamic pricing describes a pricing strategy to set up highly flexible prices for products and services. Dynamic pricing algorithms adjust prices easily and frequently based on collected consumer data and market information. Dynamic pricing is used in various industries and has the potential to magnify revenues while offering multiple other benefits for companies. This paper analyzes the relevance and importance of dynamic pricing in sports, entertainment, leisure-time activities, hospitalities, and public transportation. For every industry, selected applications, and examples are analyzed. Finally, this paper investigates if dynamic pricing is fair and how customers respond to frequent price changes.