Dynamic pricing, also known as variable pricing or real-time pricing, is a pricing strategy that involves setting the price of a product or service based on a variety of factors, such as supply and demand, competition, and market conditions. Unlike traditional pricing methods, which typically use fixed, unchanging prices, dynamic pricing allows businesses to adjust their prices in real time in response to changing market conditions. This can help businesses optimize their revenue and profits, and can also provide customers with more flexibility and options when it comes to purchasing products or services. Dynamic pricing is commonly used in industries such as retail, hospitality, and transportation.