Variable pricing is a strategy where the price of a product or service changes based on different factors. These factors can include demand, time of purchase, or customer characteristics. For example, airlines often use variable pricing to adjust ticket prices based on how many seats are left and how close the flight date is. This pricing model allows businesses to maximize revenue by charging higher prices during peak demand and offering discounts during slower periods. It is commonly seen in industries like hospitality, entertainment, and retail, where prices can fluctuate based on market conditions and consumer behavior.