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Dynamic pricing should be changing the game for airlines

Let me start by saying that dynamic pricing isn’t something new. In fact its origins go way, way back to the midst of time, when pricing was simply influenced by supply and demand.

It was a rigid model, when high demand coincided with short supply (either supply in the total market or for that particular product) then the more you could charge for the product. Easy.

The basic principles of dynamic pricing haven’t really changed since then but the variables available using advanced data and technology are starting to cause a seismic shift in the way airlines operate their business.

Dynamic pricing looks at more than just the traditional factors, and online retailers like Amazon and eBay have used this strategy to help them become the retail behemoths they are today. Hotels today also do dynamic pricing to a certain extent.


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