Worst offenders of dynamic pricing - travel industry
Nov 11, 2018, 1:39 am
#16
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I was about to. Sometimes you just have to emotionally weigh certain things or emotionally process something. As I was planning on a doing a PAY NOW, rather than a PAY LATER. Something which I don't normally do for rental cars. So...that's what irked me. I also was weighing which particular model to rent. Was comparing the exact same car models / classes. I had a certain expectation to make a certain action and then it changed...more than just a few dollars. And I more/less knew the change was due to the day of the week, not any real supply / demand issue. And this is what annoyed me enough to make the post.
it's like the constantly changing prices at the grocery store. Of course, it goes in your favor or it doesn't. But with "technology" the changes happen faster and the vendors are more sneaky about it. NEW LOW PRICE, even when it isn't. Blatant lie. "You have to remember this." Often, I would prefer if they just have a set price that is neither the low sale, or the high scam price. Just something in between.
Of course, you say, go shop somewhere else. Well...somewhere else isn't always convenient. For example - both QFC and Safeway do this sort of pricing. I do shop at a co-op and they don't do that as much.
Yes, I could go to Trader Joes, but they are not always convenient.
it's like the constantly changing prices at the grocery store. Of course, it goes in your favor or it doesn't. But with "technology" the changes happen faster and the vendors are more sneaky about it. NEW LOW PRICE, even when it isn't. Blatant lie. "You have to remember this." Often, I would prefer if they just have a set price that is neither the low sale, or the high scam price. Just something in between.
Of course, you say, go shop somewhere else. Well...somewhere else isn't always convenient. For example - both QFC and Safeway do this sort of pricing. I do shop at a co-op and they don't do that as much.
Yes, I could go to Trader Joes, but they are not always convenient.
Nov 11, 2018, 1:43 am
#17
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Good old (reductionist) capitalistic argument. The one that will hasten the end...I welcome it. Until then....a certain amount of dynamic pricing is fine with me...but it's the sneakiness about it I guess that I don't like. A store has a SALE...you typically know the start/end dates and can plan around that. But changing by day of week and/or hour of day...and there is just too much fluctuation for my tastes.Turns me off...
Nov 11, 2018, 1:52 am
#18
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Why do you call them 'offenders'? Who are they 'offending'?
I firmly believe that the people get what the people deserve. Would it suit you perfectly if every product had a sticker price and that was it? Take it or leave it. It would of course mean that you would never get a 'bargain' ever again. Umm, I doubt you are in favour of that.
But the reality is that a seller will always negotiate if they are in a competitive market. That's all 'dynamic pricing' is, a way of competing in a market. You write as if the purpose of 'dynamic pricing' was solely to put prices up and so 'offend' you by making you pay more. But what about when the competitive situation results in 'dynamic pricing' putting prices down? Do they offend you then? Umm, I don't think that is likely.
So what you are saying is that you are offended when you can't have your cake and eat it too. Just remember, when the buying public acts in certain ways, the seller will act in response. "For every action, there is an equal and opposite reaction".
Maybe you need to take a more philosophical approach to how you view 'dynamic pricing.'
Understanding Karma - The Law of Cause and Effect
Don't you think sellers are 'offended' by buyers who show no loyalty to them and their products, who online shop for the lowest price regardless of all other factors? If that is how buyers treat sellers, why would you expect sellers to treat buyers any differently?
Karma, what goes around comes around and the people always get what the people deserve.
I firmly believe that the people get what the people deserve. Would it suit you perfectly if every product had a sticker price and that was it? Take it or leave it. It would of course mean that you would never get a 'bargain' ever again. Umm, I doubt you are in favour of that.
But the reality is that a seller will always negotiate if they are in a competitive market. That's all 'dynamic pricing' is, a way of competing in a market. You write as if the purpose of 'dynamic pricing' was solely to put prices up and so 'offend' you by making you pay more. But what about when the competitive situation results in 'dynamic pricing' putting prices down? Do they offend you then? Umm, I don't think that is likely.
So what you are saying is that you are offended when you can't have your cake and eat it too. Just remember, when the buying public acts in certain ways, the seller will act in response. "For every action, there is an equal and opposite reaction".
Maybe you need to take a more philosophical approach to how you view 'dynamic pricing.'
Understanding Karma - The Law of Cause and Effect
Don't you think sellers are 'offended' by buyers who show no loyalty to them and their products, who online shop for the lowest price regardless of all other factors? If that is how buyers treat sellers, why would you expect sellers to treat buyers any differently?
Karma, what goes around comes around and the people always get what the people deserve.
Last edited by Sweet Willie; Nov 12, 2018 at 6:25 am Reason: remove derog
Nov 11, 2018, 2:22 pm
#19
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Nov 12, 2018, 6:29 am
#20
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Budget was the first vendor that I noticed doing this to me. Price would always be higher if I was logged in before making reservation. So I stopped using Budget, they never get any business from me unless they are the cheapest by a wide margin which is rare.
I seem to recall Amazon.com got called out for taking advantage of loyal customers as if one was logged into the site, the price of a book was $1 higher than if not logged in.
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I seem to recall Amazon.com got called out for taking advantage of loyal customers as if one was logged into the site, the price of a book was $1 higher than if not logged in.
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Nov 12, 2018, 12:51 pm
#21
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So...Thursday I was looking at some prices for Phoenix airport on Sixt.com...cars were starting at under $100. Now, 1 day later (1/2 day)...they are starting at $145! (Prices are before $7/day a/p charge - so actual is over $200 easy...) I already have a car reserved with Hertz, but will look again next week after the peak Fri-Sat-Sun timeframe.
I'm sure many have experienced DYNAMIC PRICING. I saw threads related to Delta, and have read about Uber surge pricing (Never used Uber).
Who do you think are the worst offenders of this practice?
I'm sure many have experienced DYNAMIC PRICING. I saw threads related to Delta, and have read about Uber surge pricing (Never used Uber).
Who do you think are the worst offenders of this practice?
If you were talking about airlines, we could get into industry consolidation, cartel-like behavior, and using political influence to enable predatory pricing by creating monopoly territories. But while the rental car industry has consolidated somewhat, there are still lots of providers from different ownership groups at PHX. Your Sixt rate jumping wasn't because some cartel made it do so: you're probably just booking at a busy time and the prices for the cars that are left are going up.
The minute I even think I'm going to need a rental car, I make a booking. Then I watch for coupons/promos and rebook it as many times as I need to. Or just cancel it if I decide to use Lyft/Uber.
Nov 12, 2018, 1:04 pm
#22
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Most do IME - that’s why you have fixed price lunch menus, pre-theatre menus and mid-week ‘market menus’, not to mention the existence of websites like 5pm.co.uk and Itison.
Nov 12, 2018, 1:37 pm
#23
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Not to mention entire categories like pizza and Chinese takeout that are so coupon-driven that you almost never pay the menu price.
Nov 14, 2018, 7:10 am
#24
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Dynamic pricing is a fact of life, just about everyone does it to one degree of another and no amount of complaining will change it. The knowledge of it however can be used to your advantage.
As the thread is about car rental agencies here are two examples: When making my annual spring training trip to TPA, I book a vehicle from Enterprise at a nearby off-airport site instead of their airport location. Even with the cost of the cab and the airport drop-off fee I'm saving around 40 percent in return for perhaps an extra 30 minutes of time. Similarly in the UK renting a vehicle with a manual transmission if you can drive one is about half the cost of an automatic.
Dynamic pricing works both ways. It's why you don't fly around Christmas or spring break and are better off to plan your vacations in shoulder seasons when possible.
As the thread is about car rental agencies here are two examples: When making my annual spring training trip to TPA, I book a vehicle from Enterprise at a nearby off-airport site instead of their airport location. Even with the cost of the cab and the airport drop-off fee I'm saving around 40 percent in return for perhaps an extra 30 minutes of time. Similarly in the UK renting a vehicle with a manual transmission if you can drive one is about half the cost of an automatic.
Dynamic pricing works both ways. It's why you don't fly around Christmas or spring break and are better off to plan your vacations in shoulder seasons when possible.
Nov 14, 2018, 11:01 am
#25
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let's not confuse "dynamic" with "competitive" or "market-driven" or "time-sensitive" ... OP's example, where the prices basically changed in real time, is the former; Badenoch and Scots_Al cite examples (higher prices during spring training in TPA, or to fly around Christmas; reduced menu prices at off-peak hours for restaurants) of the latter
Nov 15, 2018, 1:11 am
#27
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Price went up on Sat/Sun, and I think Monday stayed high...now has come down - same dates, same vehicle classes. Let's see if it drops on Thursday.
If I use a VPN (Opera) - the price goes up - A LOT! VPN is in Sweden...well to do country...compared to in-debt American IP. ;- > Though I think changing the VPN country, the price was still high.
Once bought a Norwegian air ticket with the lower price on the "Norwegian language" site. But, can't usually be bothered to check out all those permutations.
If I use a VPN (Opera) - the price goes up - A LOT! VPN is in Sweden...well to do country...compared to in-debt American IP. ;- > Though I think changing the VPN country, the price was still high.
Once bought a Norwegian air ticket with the lower price on the "Norwegian language" site. But, can't usually be bothered to check out all those permutations.
Nov 15, 2018, 4:22 am
#28
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Booking via a Swedish site for car rentals may lead to higher or lower car rental costs, and sometimes it has an added benefit of insurance coverage for no additional cost to the renter.
Hotwire and Priceline work well for car rentals too. So may booking cars using Air+Car or car+hotel travel packages from online travel agencies or even using some foreign airlines websites to book car rentals.
Hotwire and Priceline work well for car rentals too. So may booking cars using Air+Car or car+hotel travel packages from online travel agencies or even using some foreign airlines websites to book car rentals.
Nov 15, 2018, 5:31 am
#29
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Although, there's one exception. To me, it becomes "offensive" is when it becomes price gouging during a disaster or emergency. And in some jurisdictions, doing that is actually illegal. For example, the prices of essential commodities can not be significantly raised here in Florida when a hurricane is coming or has just passed.
Florida Attorney General - Price Gouging Frequently Asked Questions
I'm not sure if other states have similar laws. It's a bit sad that laws are even needed to keep businesses from taking advantage of desperate people during natural disasters. Hopefully no one in the fire zones in California have to deal with price gouging right now.
Nov 15, 2018, 6:40 am
#30
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Designed to gouge non-price sensitive OPM bookings, either last minute for flights, or peak demand times for cars
Perfectly fine with that as it subsidizes travel for the normal traveller.
Perfectly fine with that as it subsidizes travel for the normal traveller.