Dynamic Pricing at Theater Bellevue

Abstract

Dynamic pricing was introduced in the airline industry in the 1970s. Dynamic pricing has increased the revenue of almost all airlines and no airline can survive without dynamic pricing. Almost every organisation in the arts sector has to cut their budgets and the organisations are looking for new ways to increase their revenue. Dynamic pricing can be a way to increase the revenue and therefore Theater Bellevue wanted to investigate the possibility of implementing dynamic pricing. The research consisted of data analysis, estimation of the demand by using survival analysis and modelling using Markov Decision Processes.