Dynamic pricing is a strategy where the price of a product or service changes based on various factors, such as demand, time, and competition. For example, during peak travel seasons, airlines like Delta or American Airlines may increase ticket prices to maximize revenue, while offering discounts during off-peak times to attract more customers. This pricing model is commonly used in industries like e-commerce, hospitality, and ride-sharing services, such as Uber. By adjusting prices in real-time, businesses can respond to market conditions and consumer behavior, ensuring they remain competitive and profitable while providing customers with options that fit their needs.