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There is a real danger in “race to the bottom” pricing – basically, no one wins. 

By automatically diving to the bottom price all you’ve done is dented your profit margin and your reputation – and lowered the perceived value of your product. 

In his article "How to Implement Dynamic Pricing without Sacrificing Margins or Customers”, Arie Shpanya confirms what we probably already knew, that Amazon is still the reigning champion of dynamic pricing. 

Airlines want to be seen to be offering their customers the best value, whilst at the same time doing their utmost to ensure they maximise revenue.

Known as airline revenue management, airlines are refining the art of being able to adjust fares dynamically in real time while using increasingly sharpened software that considers the performances of its routes and services around the world.

Price is dependent on the state of the market, what the competition is up to - and how good your product or service is. It’s always difficult deciding how much to charge, especially if you are looking to increase prices.  

According to Chris Lema in his article How to Announce Pricing Changes (Without Ruining Everything), it's not the price change itself that you should be worried about but how you present it to your customers.

Price setting for tour operators requires a strong mix of marketing strategy and financial analysis.  The people, accommodation and components that make up the experience/holiday you provide can be incredibly diverse and pricing strategies often evolve as a tour operator develops its brand and market share. 

Companies with high churn typically spend vast amounts on marketing to try to replace their defectors. However, as it’s more cost-effective to win back lost customers than to garner new ones perhaps they should be using strategies aimed at getting “lost” customers to return.  A study completed by Marketing Metrics says you normally have a 20 to 40% chance of winning back an ex-customer – so, how’s it done?

Subscription pricing is a business model where a customer must pay a subscription to have access to a product or service. The strategy was initially developed by magazines and newspapers, but the number of companies and websites using this model for their products and services is increasing exponentially. 

We've all become used to the idea of the price of an airline seat varying according to the season, day of the week and time of day.  This is dynamic pricing in action.  The “new kid on the block” however is the setting of the price of an airline ticket according to the attributes of the customer i.e. personalised pricing.

Almost half of the 65 million trips taken abroad each year by UK citizens are "package holidays" - where the consumer buys a complete package of accommodation, flight and connections for a single price.  It’s a highly competitive market with a small number of large tour operators wrestling hard for market share.