When looking back on the history of pricing strategies, nothing really stands out until the early 80s. Before the deregulation years, most businesses stuck to a traditional model of rates, based on economic fundamentals such as cost price and profit margin. The rise of neoliberalism allowed for ambitious and previously unseen business tactics, one of them, first developed in the context of airlines, was Yield Management. Understandably Yield Management and, more generally, dynamic pricing, was a true game-changer, quickly generating large profits for lots of companies in multiple industries, and was propelled to a whole other level thanks to the digital revolution.
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Matthieu is the digital marketing manager for PrivateDeal.