Dynamic pricing is about to impact the cost of your holiday travel

If you have ever been unlucky enough to catch an Uber at a peak time then you will know all about dynamic pricing.

It is an algorithm whereby prices rise at busy times, but reduce when demand for services is lower.

Get ready for dynamic pricing at tourist attractions. And be ready to pay more at busy times.

Tourists wanting to visit the Empire State Building’s observation decks in New York City could soon be experiencing the joys of dynamic pricing.

It could cost more than $US100 per person to ascend to the observation decks on the 86th and 102nd floors.

The Empire State Realty Trust will implement dynamic pricing with prices to be determined by overall demand. Which they will determine, news portal Travel Mole reports. l

Tickets are currently priced from $79 for an adult, up to $96 for high-demand sunset viewing.

CEO Tony Malkin unveiled the surge pricing policy, saying: “We expect continued growth in 2025. We are still below overall 2019 levels of volume and have room for upside as visitation levels improve.”

Upside means you will pay more.   

The building already has fluid pricing based on the time of day although using a pricing algorithm could see prices surge during high demand periods.

The new policy would algorithmically “monetize high-demand times through the day", Malkin said.

Sorry, you'll have to pay more for your beer. It is after 10pm.

Are you ready to pay more for your pint of beer, or glass of wine, because it is late at night?

It's already happening in London.

O’Neill’s, an Irish-themed pub on Wardour Street in Soho, has introduced a surcharge which will add an extra £2 to the price of drinks purchased after 10pm.

To be fair, O'Neill's does offer late-night music, but is this the start of a trend?

O'Neills says on a sign that it operates a “a variable price list”. What that means is that after 10pm, the price it charges for drinks increases, news portal the drinks business reports.

This apparently results in the price of a pint of Brewdog IPA going from £7.40 during the rest of the day to £9.40, while a 500ml bottle of Budweiser {god forbid!) goes up from £6.05 to £8.05. Even a tonic water goes up by £1 under the system, with the price rising to £3.15.

Drinks purchased late in the evening are also served in plastic cups, rather than glass, which makes sense.

O’Neill’s is operated by Mitchells & Butlers, which has several London venues.

A spokesperson for Mitchells & Butlers sent the following statement on its controversial pricing policy to The Independent newspaper: “Most hospitality businesses and retailers deploy a form of dynamic pricing, but this means that prices can both rise as well as fall through tactical discounts being offered in the form of time-limited promotions and fixed price menus.

"Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs such as at times when door security is required.”

Complete bollocks, of course.

The BBC and the Daily Mail reported backlash against the policy.