Dynamic pricing is coming for everything in travel

Many companiees have been so focused on the potential for profits through increasingly complex fee structures that they haven’t stopped to think about whether they should

JetBlue quietly implemented "peak" and "off-peak" pricing for checked bag fees on March 22, illustrating a typical example of surge pricing. This dynamic pricing strategy involves companies raising prices during high-demand periods while not lowering them during low-demand periods.

Key takeaways

• Dynamic pricing is a well-established practice in the travel industry, where prices adjust based on supply and demand. This flexibility is evident in various aspects such as airfare, hotel accommodations, and rental cars;
• What's noteworthy is the way companies are now applying fluctuating prices to additional fees, a trend that many travelers find increasingly frustrating;
• According to industry experts, the transition to more flexible fee pricing has been anticipated for some time.

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