Blog
Dynamic pricing in car parks
10th June 2008
BBC London today carried news of an excellent example of dynamic pricing in action.
Motorists turning up at the Queensway car park will be priced according to how close the facility is to full capacity. Arriving at a non-peak time could drive the price down to 20p per hour - almost unheard of in London. But at peak times when demand is less price sensitive and the car park is full, the price rises to £2 per hour. The system automatically knows how many spare places there are. More here.
It would be pleasing to see such an innovative pricing strategy expanding to many other towns and cities.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.