What is static pricing?

Static Pricing is when a hotel keeps exactly the same selling rate at all times, regardless of the occupancy, market trends and marketplace demand. This is the opposite of dynamic pricing. Static pricing is considered an outaded practice in the industry as does not

Is dynamic pricing strategy better than static pricing strategy?

It should be mentioned that dynamic pricing strategies obviously excel static pricing strategies, when it is considered as a decision-making problem for the firm without considering the adjustment cost. The reason is that the static pricing strategy can be regarded as a special case of the dynamic one.

Should online resellers use static pricing?

While many online resellers are attracted to the level of control that static pricing provides, it doesn’t come without disadvantages. Static pricing models don’t account for fluctuations in fulfillment costs, shipping locations, or seasonal demand.

Is wholesale price dynamic or static?

As a result, it seldom occurs that the wholesale price is dynamic while the retail price is static in practice, thus the case where the manufacturer takes a dynamic wholesale price while the online retailer adopts a static retail price is not considered in this paper.