What is the meaning / definition of -Based Pricing in the industry?

In the Industry, prices for services do not have to be permanently set. They can be adjusted, depending upon how many rooms, meals, etc. are needed by customers at any a particular time. This is what -Based Pricing is all about – the price of something changes depending upon how much demand there is for it at a given time.

So, you can see that -Based Pricing offers a lot of flexibility to and other types of businesses in the industry, which can only be a good thing!

Let’s look at a specific example now…

A hotel in Wimbledon (London, UK) wants to make as much money as possible during the world-famous Wimbledon Lawn Tennis Championships. They know that for rooms and other services will be very high during that time in summer. So, they plan to increase their prices then, in parallel to demand escalation.

The economic ‘law’ of supply and is straightforward and universal. When managing revenue, making a pricing strategy Demand-Based is essential – a hotel can alter its room rates at different times of the year, instead of always being frustratingly stuck at one pricing level.

When  is high, prices usually increase.
When demand is low, prices usually decrease.


See also:

  • Demand Generators
  • Dynamic Pricing
  • BAR


  • Demand Based Pricing


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