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Costly new dynamic The retailers raising prices according to demand
November 19, 2024
|The Guardian
Paying a premium for a flight during the school holidays or a cab at peak hours might be expected, but fluctuating charges - otherwise known as dynamic pricing - could become the norm in other industries, say experts.
According to Omar Merlo, the academic director of strategic marketing programmes at the Imperial College Business School, dynamic pricing is when retailers adjust their prices in response to supply and demand. Surge pricing is when customers are charged higher prices when demand spikes.
The Wardour Street branch of O'Neill's, in central London, has implemented an additional £2 charge to pints ordered after 10pm. This means a pint of Brewdog IPA that costs £7.40 during the day will cost £9.40 after 10pm. The policy has been in place since 2022 to comply with the licensing requirement for more security staff.
Though it has angered many, O'Neill's is not the first to introduce surge pricing. Here are other industries that have implemented a form of dynamic pricing - and how it might be developed.
Ride-hailing apps
The cost of a cab using ride-hailing apps changes frequently, but Uber and Bolt also practise surge pricing.
Isabella Coolican, an associate in the competition team at Freeths law firm, said that prices tended to become more expensive on Friday or Saturday evenings, in bad weather or after big events because the demand exceeded supply.
هذه القصة من طبعة November 19, 2024 من The Guardian.
اشترك في Magzter GOLD للوصول إلى آلاف القصص المتميزة المنسقة، وأكثر من 9000 مجلة وصحيفة.
هل أنت مشترك بالفعل؟ تسجيل الدخول
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