Dynamic pricing is a pricing strategy where the price of a product or service is adjusted in real-time based on market conditions, demand, competition, or other factors. This strategy allows businesses to optimize pricing to maximize profits, increase revenue, and better meet customer demand. Dynamic pricing is commonly used in industries such as retail, hospitality, transportation, and online marketplaces, where prices can fluctuate frequently. It requires advanced data analytics and pricing algorithms to make informed pricing decisions and respond quickly to market changes.