31 August 2017
Dynamic pricing is not so much an event as it is daily life within the travel industry. As a watchdog and savings-generator for travelers, we are responsive to the practice of dynamic pricing, but the over-arching process of revenue management remains top-secret to transportation companies. Dynamic pricing has been in practice for quite a few years but only in the last year or so, has it become status-quo for the industry. We find airline prices change in some way or form on a near daily basis.
The practice of dynamic pricing creates a lot of stress for consumers and agencies when the fare they see today is not there tomorrow, and even on the negotiated fare side, taxes and fuel may change. While it makes sense for these airlines to maximize revenue, the level of stress it creates in the purchase path leaves the practice less than desirable in the minds of consumers. This also means that technology in the industry needs to be built to work with dynamic pricing, like the need for technology to keep quick response times but handle the constant shift in data every few hours.
It’s only going to become more sophisticated. Given the amount of data that’s currently being collected from consumers and behaviors, dynamic pricing will also evolve targeting with growing demographics and trending shopping patterns. At RightRez, we are in a unique position to capture and deliver travel insights, and we recently had the opportunity to share our thoughts on this topic with Washington Post and Chicago Tribune readers.
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