Dynamic Pricing Explained: Machine Learning in Revenue Management and Pricing Optimization
Imagine you’re about to open an intercity bus service. How would you price tickets not only to cover expenses for each route but also to achieve a certain level of revenue to grow and develop your business? Would you consider fixed costs, competitor prices, or both?
The reality is that you’ll need a more sophisticated pricing strategy to fit into today’s highly competitive market and be flexible enough to adjust to any changes. The two biggest tasks businesses have to address in this regard are revenue management and price optimization.
We talked with experts from Perfect Price, Prisync, and a data science specialist from The Tesseract Academy to understand how businesses can use machine learning for dynamic pricing to achieve their revenue goals.