Price point

A price point is a specific price at which demand for a product is supposed to remain strong. It is a strategic pricing level that balances affordability for consumers with profitability for businesses. 

A price point establishes how a product or service is perceived—a higher price point can imply the premium quality of a product or service. Price points are influenced by competition, supply and demand, and the elasticity of demand (how sensitive customers are to price changes).

Dynamic pricing allows businesses to optimize revenue by offering multiple price points for the same product or service based on demand conditions. For example, a single standard room might have several price points, varying based on specific days, with prices increasing during peak periods and dropping during off-peak times.