Dynamic Ticket Pricing: Model and Application

Dynamic ticket pricing has revolutionized pricing for businesses over the years. This technique has been able to incorporate different factors into setting the price for their products, which goes along with the demand of their customers. The model has components like the market model, the optimizer and the forecaster. Even though, dynamic ticket pricing was primarily created for airlines, it has been adopted and modified in different sectors like utility companies, hotels, retail, sports and on-demand services. This is a business strategy that has been around since 1956 and it will continue to grow and revolutionize different industries especially e-commerce.