in air transportation Dynamic pricing re-appeared in the market at large in the 1980s airline industry in the United States. Before the 1980s, the airline industry's seat prices were heavily regulated by the United States government, but a change in legislation during the decade gave airlines control over their prices. Companies invested millions of dollars to develop computer programs that would adjust prices automatically based on known variables like departure time, destination, season, events, and more. After seeing the success of dynamic pricing in selling airline seats, many other verticals within the travel and tourism industry adopted the practice. Dynamic pricing is now the norm for hotels, car rentals, and more, and consumers have largely accepted the practice as commonplace. The practice is now moving beyond the travel and tourism industry into other fields. Dynamic pricing in rideshare services The most recent innovation in dynamic pricing—and the one felt most by consumers—is the rise of dynamic pricing in rideshare apps like Uber. Uber's “Surge Pricing” model, where riders pay more for a trip during peak travel times, began as a way to incentivize drivers to stay out later in Boston, according to Bill Gurley, former board member of Uber. The incentive worked, and the number of drivers on the road in the early morning hours increased by 70%-80%, and the number of unfilled Uber requests plummeted. Dynamic pricing today Dynamic pricing has become commonplace in many industries for a variety of reasons. Hospitality Time-based pricing is the standard method of pricing in the tourism industry. Higher prices are charged during the peak season, or during special event periods. In the off-season, hotels may charge only the operating costs of the establishment, whereas investments and any profit are gained during the high season (this is the basic principle of long-run marginal cost pricing: see also long run and short run). Hotels and other players in the hospitality industry use dynamic pricing to adjust the cost of rooms and packages based on the supply and demand needs at a particular moment. The goal of dynamic pricing in this industry is to find the highest price that consumers are willing to pay. Another name for dynamic pricing in the industry is demand pricing. This form of price discrimination is used to try to maximize revenue based on the willingness to pay of different market segments. It features price increases when demand is high