Dynamic pricing refers to the practice of adjusting the price of a product or service in real-time based on various factors such as demand, supply, and market conditions. This pricing strategy allows businesses to set flexible prices that can change rapidly to optimize revenue and maximize profits. It is often used in industries such as travel, hospitality, and e-commerce, where prices can fluctuate based on factors like seasonality, competition, and customer behavior. Dynamic pricing enables businesses to stay competitive, respond to market changes, and cater to individual customer needs, ultimately creating a more efficient and personalized pricing experience.