Demand-Based Pricing: How to Set Up the Pricing Method for Success

Published on January 19, 2023

When can companies use demand-based pricing, and when should they avoid it? Here’s an overview of the potential and risks of this dynamic pricing strategy. 

As an advisor to the leisure, travel, and transportation industry, I am often asked about demand-based pricing. Companies observe how, for example, airlines have strategically used price to fill their planes, and want to explore whether it can be applied in their industry. Will a retailer or a restaurant see the same success in incentivizing demand and growing profits? The answer to this question, of course, is it depends... 

In 2020, some countries saw demand for toilet paper and dried pasta explode overnight, while movement restrictions meant that holiday bookings came to a standstill. In 2021, we then became familiar with the revenge traveller, with over 41 percent of consumers jumping in their cars…

Continue reading on website
Other news

2021 Global Sustainability Study: What Role do Consumers Play in a Sustainable Future?

January 19, 2023
The importance of sustainability for consumers and companies has only been growing. The challenge? There is both long term potential if companies transform and risks if sustainability topics are left unaddressed. In our global, cross-industry study, we explore consumers’ attitudes toward sustainability – and their willingness to pay for it!“Sustainability is in demand” – as consumers embrace susta

Year in Review: Helping Companies Get Back to Growth

January 19, 2023
Over the past twelve months at Simon-Kucher, our global team of experts have been advising businesses on how to emerge from the crisis, not just in one piece, but actually positioned to accelerate top-line growth. CEOs Mark Billige and Andreas von der Gathen reflect on the creative solutions and strategies that enabled companies to shape their own success and discuss three mega trends dominating t