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What is Dynamic Pricing & How to use it?


What is Dynamic Pricing & How to use it?

The biggest tasks faced by bus operators today are Revenue Management & Price Optimization. The reality is that bus operators need a sophisticated pricing strategy to gain a competitive advantage. In this context, Dynamic Pricing can come to the rescue. It is a new-blooming trend across the bus industry that creates an opportunity for the bus operators to fill as many seats as possible and at the same time, for the best price. This strategy is the same as “Catching fish”. Put a hook attached with various price tags and absorb the customers.

To be more specific, this strategy allows bus operators to optimize the ticket price according to Cost-based, Demand-based & Competitor based, at the same time execution is more important and now let’s move on to “How to use Dynamic Pricing & who should use”?. How to use Dynamic Pricing

“Dynamic Pricing can do wonders in a whole new way” People are allowed to check and compare the same item on different websites until they get the best deal. In this situation, entrepreneurs might be suffering profit loss and financial crises. To avoid this and to make more profit, Dynamic Pricing is the best choice of practice. So it means before getting into strategy, few factors are to be considered.

  • Study the market condition & product demand
  • Customer interest and expectations
  • Price Standardization

Consider this combination of factors and come up with a standard price that satisfies all.

For instance, you are running a bus operating business and you are in search of a solution to achieve a competitive advantage. Finally, you have decided to establish a Dynamic Pricing strategy in your business. As you are new to this operation, you will be having a few doubts such as how do you make use of Dynamic Pricing and how to start with it?.

When you have decided to apply “Dynamic Pricing Strategy”, start your business by throwing a fixed price. And according to the season rule, slowly shift the gears of pricing. In the off-peak season, the occupancy rate remains low naturally. At this time, if you are ready to decrease the ticket fare, undoubtedly the occupancy rate will get increased, thereby it balances your business revenue and keeps you as a price leader even at the time of low demand departure. In this condition, Dynamic Pricing makes you think about how much the customers are willing to pay and their ability to afford the product.

On the other hand, passengers are ready to pay more during the peak season time like festivals & weekends. That means we are on the “High Demand Departure”. At this time, occupancy rates will be on high, and demand for the tickets will get increased. Utilize this period to tower your business revenue. So, by considering the demand, increase the ticket fare in terms of percentage and yield the profit. Here the lesson from Dynamic Pricing is “where there is demand, there is scope to earn profit”.

This is how Dynamic Pricing helps to achieve business goals and it is able to change your business face when you apply properly.


Dynamic Pricing is a weighing machine that balances both the customers and entrepreneurs based on price. It is a rental method that helps in increasing your profitability and business revenue by fluctuating the product price according to the changing demand. Apply it based on your business characteristics.