Surge pricing creeps over to restaurants, bowling alleys

We’ve all seen that airline ticket prices vary based on seat location and flight time and date of departure, but other businesses, such as restaurants and theaters, change their prices quickly. are in order to improve supply and demand.

This tactic, commonly called surge pricing, or dynamic pricing, was once largely limited to airline and ride-share spaces.

Now fitness studios, movie theaters, bowling alleys and even restaurants are charging customers different prices for the same goods and services, to better manage consumer demand—and effectively serve those customers. are being met who are willing to pay.

Amidst bank failures, the inflation battle faces obstacles.


Sorting out which customers will pay more.

“Restaurants often have trouble balancing supply and demand, so if, for example, there’s an unexpected increase in reservations, there may be They don’t have enough tables.”

A restaurant can easily turn away customers it can’t accommodate, or raise prices in real-time “to try to sort out which customers,” Shumsky said. are more willing to pay for that particular time,” Shumsky said. “And it’s more and more popular in a variety of industries and you’ll see it on your apps and when you go to your restaurant or your amusement park or even your bowling alley.”

Moviegoers can choose. Save or splurge on tickets at AMC movie theaters.which recently announced a new pricing structure whereby seat ticket prices vary based on their location in a given theatre.

“Information Flood”

Businesses once relied on expensive software and algorithms to determine pricing structures that would help them maximize profits. Businesses of all sizes now have access to more data about consumer preferences.

Reservation apps, for example, collect valuable data about the busiest times for restaurants.

“They know how many customers need the service and that gives them a flood of information that allows them to make better pricing decisions,” Shumsky said.

He argues that consumers have become more accustomed to the trend of price hikes in their daily lives as well.

“I think people have gotten used to the idea that prices can change in real time for some services, so you see that changing over time in new industries,” Shumsky said.

Those willing to pay may not get the best deal, but they will get a reservation, or whatever service they are willing to pay extra for. Conversely, customers on a budget can visit the theater at off-peak times for cheaper seats.

“Of course consumers are always welcome to vote with their feet,” Shumsky said.

Planning ahead of price increases can be difficult—for example, if you’ve budgeted for an activity that has a sudden price change.

“When you can’t plan because prices vary dramatically over time, it makes life more difficult,” Shumsky said. “And consumers may decide not to subscribe to a particular service for that reason.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *