Like most people I understand that peak periods cost a premium, but you have to ask. How far is too far before trust is destroyed and clients feel… exploited?

Sadly, this is not an isolated case.

Last week, there were headlines about UK supermarkets experimenting with electronic shelf labels, which update prices automatically. At the same time, there was backlash at the pricing for the 2028 Los Angeles Olympics (LA28) - where despite claims that nearly half of all tickets would be less than $200, many residents reported they were unavailable and tickets left were in the rand of $1k - plus a 24% customer service fee.

It raises questions. Is it acceptable that the person next to you may have paid half the price that you did for the same thing? Are there unspoken rules on how far is too far?

Demand based pricing itself isn’t new, it’s the basic law of supply and demand. Pricing is adjusted real-time based on signals like market insights, historical spending patterns, popularity, timing and behaviour. Airlines have used it for years, hotels have built revenue models around it and auction houses depend on it. What has changed is how visible and widespread it is becoming.

For business, it could be smart. For clients, it could feel manipulative. The moment two people pay different prices for the same thing, it starts to feel unfair. When a brand visibly uses a high demand moment to maximise profit, it feels like opportunism at the expense of relationship. This is why some famous artists such as Taylor Swift, Ariana and Adele have refused to apply the principle to their ticket sales.

There are other ways to protect revenue: Minimum stays, advance purchase, early access, tiers with clear value differentiation, packaging and a ‘cap’ to prevent pricing being excessive (this could probably be human judged).

And, there are definately boundaries: Basic necessities should be protected (take note, supermarkets). Transparency matters - with clear pricing logic and no hidden costs in fees. Finally, always reward loyalty. Guarantee best pricing for those who have proven commitment, because the lifetime value of these clients are worth far more than the incremental pricing of a peak moment.

Brands who want to go further could introduce a ‘fair price guarantee’ or let loyal clients know if something goes down in price following their purchase, perhaps offering a gift card for the difference. John Lewis springs to mind with their ‘Never Knowingly Undersold’ price promise - and yes, they really do refund the difference.

Remember - just because you can change the price - doesn’t always mean you should. And perhaps that’s why, during the most prestigious tennis event of the year, Cannizaro House which is walking distance away, still has rooms available.

Sources:
Main image: Wimbledon Tennis Championships Website, Sinner Semi-Final Breakthrough
Better Retailing: Supermarkets may test dynamic pricing
The Guardian: LA Residents alarmed by price of 2028 Olympics presale tickets
John Lewis, Never Knowingly Undersold