flexible policies
Posted: Sat May 24, 2025 10:17 am
What competition-based pricing looks like in practice
To better understand how competition based pricing works in the real world, let’s look at a couple of examples:
1: Airlines — low fares +
Competition-based pricing is prevalent in the airline industry. Take, for example, a business model for Airtastic Airlines. They focus on low-cost pricing, amazing customer service, and efficient operations. Because of this approach, they’ve been able to compete with other big-name airlines amid fluctuating economic conditions because of their commitment to providing the lowest prices for the most in-demand routes.
Here’s how their pricing changes to remain competitive:
Pricing below competition: The airline continuously monitors competitor afghanistan phone number list prices and adjusts its fares in response, often leading the way in price reductions that other low-price competitors follow.
Pricing at competition: When demand is steady, the airline sets its prices in line with the competition, closely monitoring the market for changes in supply, demand, and pricing.
Pricing above competition: During demand surges for specific flights or destinations, the airline may temporarily raise their prices slightly above the competition. Taking advantage of increased demand allows the airline to generate additional revenue, offsetting potential losses during other price cut periods.
Another attractive benefit is their cancellation policy, which allows customers to cancel their flight up to two hours before a departure and secure a full refund. It’s hard to compete with that.
To better understand how competition based pricing works in the real world, let’s look at a couple of examples:
1: Airlines — low fares +
Competition-based pricing is prevalent in the airline industry. Take, for example, a business model for Airtastic Airlines. They focus on low-cost pricing, amazing customer service, and efficient operations. Because of this approach, they’ve been able to compete with other big-name airlines amid fluctuating economic conditions because of their commitment to providing the lowest prices for the most in-demand routes.
Here’s how their pricing changes to remain competitive:
Pricing below competition: The airline continuously monitors competitor afghanistan phone number list prices and adjusts its fares in response, often leading the way in price reductions that other low-price competitors follow.
Pricing at competition: When demand is steady, the airline sets its prices in line with the competition, closely monitoring the market for changes in supply, demand, and pricing.
Pricing above competition: During demand surges for specific flights or destinations, the airline may temporarily raise their prices slightly above the competition. Taking advantage of increased demand allows the airline to generate additional revenue, offsetting potential losses during other price cut periods.
Another attractive benefit is their cancellation policy, which allows customers to cancel their flight up to two hours before a departure and secure a full refund. It’s hard to compete with that.