Price Hikes – Is it fair, is it moral? Is it ethical?
Recently, my wife and I booked into a hotel for a Saturday night, to attend a family celebration. We had previous experience of increasing prices that hospitality demands as you approach the date of the booking you need, and had been warned that this was likely to happen with the hotel in question.
I checked the price on Monday. It was £105 per room per night including breakfast for the July date we were after, which I considered a fair price. I finally had time to book, three days later, it was £195 for the same deal. Normally, I would vote with my feet and go elsewhere but we were part of an event and so were effectively a ‘captive audience’.
I queried the rise and they said this was ‘policy’. Apparently ‘it always happened as we approached the date of the event and the availability of the rooms reduced’, (said in a jolly voice!). Note, nothing was said about it being higher for the summer months.
I had no choice but to accept, as I wanted the convenience of being ‘on-site’. However, it started me wondering. The price nearly doubled. It was a rise of 86%. How can such price hikes be justified? The event was still four months away! The product on sale had not changed.
Had overheads shot up overnight? I doubt it?
Was this pure profiteering……?
This is a common occurrence which we now tend to accept as the norm. I understand that during Covid, hospitality took a significant ‘hit’ and have since sought to recover some of the lost ground. But at some stage do you stop recovering and start ‘taking advantage’?
Or, is this simply that with a higher demand in the summer months, they can ‘get away with’ higher prices. The old ‘supply and demand’ ratio? Turn this on its head and it could be argued that the standard price is £195, but in order to attract more customers in the colder months they drop it to £105!
What do you think?
Is seasonal pricing, where the price increases in line with demand, ethical?
Is it fair and right to double prices to recoup losses and not return them to the original pricing once this has been achieved?
To be fair, if I had an increase in demand for my courses or sessions, would I increase my prices? If I did, it would not be double the price! I think 5 to 10% might be justifiable.
If I had a ‘captive audience’, perhaps a company that has embraced the Salient Ethos and Programmes and wishes to have another cohort join the programme, would I increase the price? Hand on heart, no I would not. Clearly, my product/service had not changed.
There are two ways of looking at this. As a consumer, and as a business person.
Where do YOU stand?! What is fair, what is ethical and what is good sense?
Let me know your thoughts, or if you have any further questions, why not get in touch? You can do so HERE or by email directly!