A Surge in Airport Retail — on the Frontier of Dynamic Merchandising | Aviation Pros

Consumers have been incensed to learn how Uber, Amazon and other new economy companies change prices throughout the day with surges and short-lived discounts. Uber’s surge pricing has been known to increase over 4x at peak times, and prices on Amazon have been shown to move up to 260 percent over the course of the year. As an airline professional, I ask what took so long? And when will we see more of it?

Although some forms of variable pricing have been around forever — think about $2 beers at Happy Hour with half off appetizers, or even discounted movie matinees —, it was really airlines who embraced a system-wide idea that prices for the same product can change depending on when you buy it.

Read complete article here:

A Surge in Airport Retail — on the Frontier of Dynamic Merchandising.