# Dynamic pricing

Dynamic pricing changes the price of a travel offer based on context such as demand, availability, timing, and commercial rules.

Dynamic pricing is pricing that changes according to context rather than staying
fixed. In travel, the price of a fare or ancillary may vary with demand,
availability, timing, route, cabin, or commercial rules. The goal is to match
price more closely to value, scarcity, and willingness to pay.

## What changes dynamically

Dynamic pricing can apply to the fare, an ancillary, or a broader offer. The
price may change because inventory is limited, departure is closer, demand has
shifted, or the itinerary sits in a different commercial context.

That does not mean every price is personal. A dynamic price can be shared by
many travellers who search the same route at the same time. Personalisation is a
separate idea, and it should not be assumed just because a price changes.

## Why it matters for merchandising

Dynamic pricing raises the importance of explanation. If a price changes, the
traveller still needs to understand why the offer is worth considering now.
Without a clear value story, a dynamic price can feel arbitrary.

The commercial team also needs to understand the difference between pricing
power and merchandising quality. Raising a price may increase revenue on one
sale, but a poorly explained offer can reduce trust and lower future attach.

## How to think about it

The best use of dynamic pricing starts with the traveller decision, not the
pricing model. What is the traveller choosing? What context makes the choice
valuable? What would make the price feel fair?

Those questions keep dynamic pricing connected to retailing rather than treating
it as a black box. A price is only useful when the traveller understands the
offer it belongs to.

## Frequently asked questions

### What is dynamic pricing?

It is pricing that changes according to context, demand, availability, timing, or commercial rules rather than staying fixed.

### Is dynamic pricing the same as personalised pricing?

No. Dynamic pricing can change for many contextual reasons without being based on a named individual.

### Why does dynamic pricing need clear presentation?

Travellers need to understand the value of the offer, especially when prices differ by timing, itinerary, or availability.