Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
The Hidden Cost of Price Optimization Algorithms
We are looking at how dynamic pricing models, specifically the ones used by major airlines and ride-share platforms, have bled into everyday retail. Lucas and Luna break down the specific mechanics of yield management software that adjusts prices in real-time based on demand signals. We explore the case of a mid-sized hotel chain that lost twenty percent of its direct bookings after implementing an aggressive algorithmic pricing tool. The episode examines the psychological backlash from consumers who feel manipulated, leading to a shift toward transparency-based pricing strategies. We discuss…
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