Explain one reason why airlines use dynamic pricing, especially when selling tickets to online customers.
Question
Explain one reason why airlines use dynamic pricing, especially when selling tickets to online customers.
Solution
Dynamic pricing is a strategy that airlines use for a variety of reasons, one of which is to maximize their revenue. Here's a step-by-step explanation:
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Demand and Supply: The basic principle of dynamic pricing is to adjust prices according to demand and supply. If a particular flight is in high demand, the airline can increase the price of tickets. Conversely, if there is low demand for a flight, the airline can decrease the price to encourage more bookings.
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Real-Time Adjustments: Dynamic pricing allows airlines to make real-time adjustments to ticket prices. This is especially important in the digital age, where
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