Inflation is being exacerbated by surge pricing, forcing consumers to pay more for goods or services that are already overpriced.The issue was recently covered by the Financial Times, which interviewed bar-goers at a local pub where the owner recently introduced “dynamic pricing” making beer more expensive on evenings and weekends.
From the Financial Times:
For drinkers at the Coach House in central London on a busy work night this week, there was an uncomfortable piece of news to digest: the price of Britain’s favourite alcoholic beverage had just gone up — again.
Stonegate, Britain’s biggest pub company which runs the Coach House, has announced it will charge pubgoers 20p extra for a pint of beer on busy evenings and weekends. It is part of what it called a new “dynamic pricing” policy in some of its venues.
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This has come much to the annoyance of some of its regulars. “It’s not right; we’re being done over enough on beer as it is,” says Adrian, a 37-year-old brand marketing manager, who has nipped into the pub near Piccadilly Circus after work. Sipping a £6.25 pint of Heineken, he admits that after the fuzziness of a few more drinks he might not even notice the price increase as the pub fills up.
“It just fleeces people trying to enjoy themselves,” he adds.
Dynamic pricing works by allowing an AI algorithm to adjust prices for goods or services based on numerous factors, for example making concert ticket prices higher or lower depending on demand, or timing.