Most of us are familiar with dynamic or personalised pricing with airlines, but with the growth of online sales, the price of almost any product could be affected
Businesses use price discrimination to maximise profits selling their goods and services at the maximum price they know a customer is willing to pay.Businesses use price discrimination to maximise profits selling their goods and services at the maximum price they know a customer is willing to pay.Last modified on Sun 11 Dec 2022 14.
But it doesn’t just happen with air fares. These days, just about anything you buy online could be susceptible to this type of pricing. As you shop around, businesses can collect data about you, then employ sophisticated analytical tools to ensure you may never actually get the lowest available price.
“However, the growth of online sales has created a much greater scope for dynamic pricing and, consequently, the risk of personalised pricing or price discrimination,” Nicholls says.Dr Rob Nicholls For instance, if you’re shopping around for an air fare, and enter the same search for flights to the same destination on the same travel dates on multiple occasions, airlines can use this information to charge you more. Nicholls says this type of price discrimination is based on “your perceived need to travel on specific dates. The more inquiries that you make using a specific set of dates, the higher the perceived willingness for you to pay for those dates.
Nicholls says you can also play the “name and shame game” if you feel like you’ve been targeted with price discrimination. “Inform everyone you know,” he says. “That reputational risk issue is really important to businesses.”
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