Dynamic Pricing's Real World Application
As pricing technology becomes more and more sophisticated, incorporating complex data analysis and using AI and Machine learning to optimize and deploy pricing, we’re seeing a wider acceptance of Dynamic Pricing. Industries like airlines, hospitality, and ride-sharing have led advances in dynamic pricing, but other industries are now opening up to the possibilities. Both B2C and B2B companies are looking at incorporating Dynamic pricing into their strategies. We’ll talk about less obvious industry examples like Vail Resorts’ dynamic ticket pricing, and Lyft’s B2B strategy. True Dynamic Pricing goes hand in hand with AI, as the real-time analysis and automated deployment of prices go beyond the physical capabilities of a pricing team. Whether pricing is being adjusted hour-to-hour or only week-to-week, AI can simulate and predict demand to optimize pricing for changing market conditions.