OnDemand WTP Pricing Research

Surge pricing may soon be on special at your favorite restaurant | Quartzy

Restaurants are joining hotels, airlines, ride services, and ski areas in the practice of adjusting their prices (paywall) to reflect consumer demand. This type of strategy has been most notable in the form of surge pricing for ride services like Uber and Lyft, but the restaurant version is actually something like the inverse. Instead of prices soaring on New Year’s Eve or during a sudden rainstorm, restaurants set their normal prices for peak times—weekend evenings—and offer a discount for diners who are interested in a Tuesday night out, or a dinner that starts at 5pm.

Think of it like shopping for the cheapest possible airline ticket, even if it means getting up at the crack of dawn for a 6am flight, or like an upcharge for dining at the most desirable times. Either way, it’s a pricing structure with plenty of parallels.

Movie theaters and playhouses have long offered matinée discounts, and commuters may recognize a similar pricing model on train tickets, which in many systems, including New York City’s Metro-North and Long Island railroads, charge more for a ticket during rush hour than on the weekend or in the middle of the afternoon. Ski areas around the country have instituted what they call “dynamic pricing,” adjusting the cost of a ticket to the number of skiers on the mountain.

Read complete article here:

Surge pricing may soon be on special at your favorite restaurant — Quartzy.

Post a Comment

WP-SpamFree by Pole Position Marketing