Glossary
Dynamic Pricing
Definition: Dynamic pricing is a pricing strategy where airline ticket prices change in real-time based on demand, supply, booking patterns, and other market factors, meaning the same seat can have vastly different prices at different times.
Dynamic pricing takes yield management further by using real-time data and machine learning to set prices that may differ for each individual query. Modern airline pricing systems consider factors like: how many times you’ve searched for the route, your geographic location, current demand, competitive prices, time until departure, and day of week.
The shift toward continuous pricing (also called NDC dynamic offers) means airlines are moving away from fixed fare classes toward individually calculated prices. This makes it harder for consumers to find consistent pricing and increases the value of agent relationships.
Consolidator fares provide a buffer against dynamic pricing volatility. Because consolidator rates are negotiated in advance under commercial agreements, they remain more stable than public fares. BookMyBusinessClass’s access to wholesale pricing means our clients are less affected by the rapid price swings that frustrate consumers booking directly.