Dynamic Pricing - Leading pub brand plans to charge more at peak times

The owners of the Slug & Lettuce and Yates’s pub brands plan to raise prices at 800 venues during peak times to help cover soaring costs. Dynamic pricing is used in many sectors ranging from airlines to theme parks and hotels and trains. This is a great applied example when teaching demand and pricing. The technologies are in place to make pricing more flexible. Will customers take to it?

What is dynamic pricing?

Dynamic pricing is a strategy that businesses use to set prices in response to changes in demand. With dynamic pricing, prices can change based on a wide range of factors, including the time of day, the day of the week, special events, and even the weather.

For example, many airlines use dynamic pricing to set ticket prices, raising prices when demand is high and lowering them when demand is low. This allows them to maximize revenue. Dynamic pricing can be controversial, as it can result in some consumers paying more for the same product or service than others.