by businessam.be
published on Friday April 26, 2024 to 08:37 •
2 min read
Airlines lure unsuspecting travelers with low base prices, only to surprise them with an avalanche of unexpected costs. ‘Drip pricing’ is the culprit: a cunning strategy to disguise the actual ticket price.
The term ‘drip pricing’ stands for the cunning addition of extra costs after you have already gone for the ‘cheap’ basic price. Luggage, seat selection, meals, WiFi: all these things seem harmless at first glance, but ultimately increase the price considerably.
These practices are not new, but with the rise of ‘unbundled’ rates – where everything has to be booked separately – the problem is more acute than ever. Travelers are seduced by the low basic price, only to realize later that they still have to pay a lot extra.
Consumer and airlines
Unfortunately, many consumers fall prey to this strategy. The psychological urge to go for the lowest price makes us vulnerable. According to marketing professor Vicki Morwitz, people instinctively choose the option that seems cheaper at first glance. “But in the end they pay more than necessary,” she says CBS.
The airlines defend themselves by stating that ‘drip pricing’ gives consumers more freedom of choice. “The result, of course, is that it is more difficult to compare different products and airlines. While that is true, airlines, as for-profit companies, have no obligation to make comparisons with their competitors easier,” said Jay Sorensen, who advises U.S. airlines with his consultancy IdeaWorks
