👉 Fares math, also known as fare calculation or revenue management, is the process of determining the price of transportation services like airlines, buses, trains, and ride-sharing platforms. It involves complex algorithms that consider numerous factors such as demand, supply, time of day, seasonality, distance, fare caps or ceilings, and revenue goals. These factors are used to set dynamic prices that aim to balance maximizing revenue with attracting customers. For instance, prices might be higher during peak demand periods and lower during off-peak times to encourage usage when it's less expensive for providers. The goal is to optimize revenue while ensuring service availability and customer satisfaction.
