Analysis: we may see pubs following airlines and hotels and trying to get customers to pay more for their pints during peak timesYou may be used to paying more for a plane ticket or a train journey during peak times, but what about in a pub? A major British hospitality company has announced a similar approach to how much it costs to drink beer. Stonegate Group, which owns chains including the Slug & Lettuce, has announced plans to increase drinks prices when their pubs are at their busiest.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage PreferencesThe success of dynamic pricing – especially common in travel – relies on whether or not a company or event can guarantee demand from potential customers.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences For example, customers may know that they generally pay €5 or €6 for a pint at a particular pub, and they will use that price as their starting reference for what an acceptable price might be. They are using their reference points to assess price fairness. For a price increase to be perceived as fair, the reference point needs to shift in accordance with the new cost.
For example, one study showed that golfers tended to think it was fair for a golf club to charge a regular price for"prime time" slots and offer a 20% discount for other times. But they thought it was unfair if the course charged 20% more for a prime slot compared to a regular price at other times.