You typically want to buy things at the lowest price possible, but stores are trying to maximize what you’ll spend. It’s like a game of The Price Is Right. Retailers try to ascertain the highest amount you’ll pay for a good or service without making it so expensive that you’ll purchase it elsewhere instead.
This isn’t a one-off game—it happens all the time, as stores adjust their prices up and down to account for input costs, competitor prices, and other factors.
Still, most of the time, people have a general idea of what to expect when they go to purchase many goods and services. Because even when those prices change, those changes are usually gradual or infrequent—and on the rare occasion they aren’t, the reason is usually significant enough that it’s made the news.
The growing trend of “dynamic pricing,” however, is increasingly destabilizing prices and causing significant sticker shock.
Let’s look at how dynamic pricing works so you can better understand why some products and services suffer such frequent (and sometimes substantial) price fluctuations. I’ll also give you some advice on how to even the playing field a bit so you can minimize the impact dynamic pricing has on your wallet.
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How Dynamic Pricing Works
Let’s say a hotel chain decides it’ll charge $300 per night during the April-September peak season and $200 per night during the October-February off-peak season. That’s an example of static pricing, in which a company determines prices up front and leaves those prices where they are for a long period of time.
Or let’s say a fashion company decides that it costs them $30 to make a sweater, so they’ll charge $40 for it. That’s cost-plus pricing, in which a company figures out how much it costs to produce a product or service, then adds a consistent markup to secure a profit.
In both those examples, those companies will use data to determine the prices, and they’re able to change prices as needed—the hotel might raise October prices next year if they saw unexpectedly high demand, or the fashion company might combat higher production prices by raising the sweater’s price to $45. But the changes they make might not be significant, and if they are, they might not be all that frequent.
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Dynamic pricing, however, allows for hyper-frequent (read: real-time) price changes based on market conditions, competitor pricing, time of purchase, even your consumer data. And while those changes might be small, some can be downright stark.
Have you ever ordered an Uber or Lyft right after a concert or sporting event? Then you’re probably familiar with one type of dynamic pricing: surge pricing. The demand for rides is higher than the supply, so these app companies capitalize on the opportunity to charge more. Those who desperately want a ride right away are often willing to pay the increased fares; those who can’t afford to or otherwise won’t pay the inflated prices might wait until the cost goes down or find alternative transportation.
Travel and hospitality companies frequently engage in dynamic pricing, too. Airline tickets, for instance, will fluctuate based on how many seats are available, the number of days until departure, and more. Meanwhile, hotels will adjust nightly rates based on season, local events, and booking volume.
Then there’s surveillance pricing (aka personalized pricing)—a more insidious form of dynamic pricing. Starbucks, Staples, Instacart, Kroger, Walmart, and other large companies have come under varying levels of scrutiny for allegedly using personal data, browsing history, and other information to charge different people different prices for the same goods.
The practice has been met with so much uproar that a few states—Maryland, Connecticut, and New York—have passed legislation to stop retailers from using personally identifiable data to customize their prices.
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How Can You Fight Dynamic Pricing?
Thankfully, there are a few strategies you can implement to shield your wallet … at least somewhat.
Be Mindful of Timing
When it comes to travel, timing is key.
Is your basketball team up by 30 points with only five minutes left? You might want to consider ordering your Uber and leaving early before surge pricing kicks in. Alternatively, you could walk to a bar nearby and wait until the demand has gone down.
Do you need to book a flight? If an upcoming flight isn’t selling as many seats as anticipated, the price might go down. If it’s selling out quickly, the cost might soar as high as the plane. In short: When you book can have a significant impact on how much you pay.
Book peak-season domestic flights three to six months before the trip. You’ll get better deals on off-peak domestic flights one to three months before departure. And travel experts frequently recommend booking international flights three to five months in advance to get the best price.
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Compare Prices
Tracking and comparing prices is a good practice even when dynamic pricing isn’t at play, but it can be particularly useful in that situation. When arriving at an airport for a vacation, if we need a ride to our hotel, my significant other and I will both open Uber and Lyft to see which combination of person and app offers the lowest price.
Despite needing the exact same ride, the same app will often give us different prices. If there is a reasonable deal, we’ll choose the cheapest price. When all of them are surging because several flights just landed, we’ll combine this tip with the previous one and compare prices again a bit later after the surge has ended.
Do you shop almost exclusively in brick-and-mortar stores? Try comparing the in-store and app prices. Sometimes, a retailer will match their online prices, saving you money. My fiancé’s groomsman did this for their wedding suits. The store had an “online-only” sale for 30% off the chosen suit. However, when asked, the physical store was able to match the online price.
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Contact Your Legislatures
As I mentioned above, public backlash has already been able to stop dynamic pricing from certain companies and in some locations.
Maryland passed the Protection for Predatory Pricing Act (HB 895), effective Oct. 1, 2026, which states retailers aren’t allowed to set a “personalized price for a good or service that is specific to a consumer based on [their] personal data.” Discounts from loyalty programs or subscriptions and price adjustments for taxes or shipping costs to different locations are excluded.
Other states are also looking into dynamic pricing legislation and some people want to enact federal legislation on the topic. As of March 2026, more than 40 bills about “personalized algorithmic pricing” were introduced across 24 states.
So if you really want to beat dynamic pricing, call or send an email to your representative.
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