What is Personalized Pricing and Is It Costing You More?
Understanding Personalised Pricing in the Travel Industry Air fares are known to fluctuate, but have you ever noticed that after booking your tickets to a destination like Disneyland, the flight you were looking at the day before has suddenly become more expensive? This phenomenon can be attributed to a practice known as personalised pricing, also referred to as surveillance pricing. Unlike traditional fixed pricing models, this approach tailors prices to individual customers based on their personal data and online behavior. Businesses collect information through data analytics, tracking users' purchase history, location, and demographics. With this data, they use artificial intelligence to analyze search habits and determine what a customer might be willing to pay. For instance, if you booked your Disneyland tickets first, an airline may recognize that you need to book flights on specific dates and adjust the price accordingly. Dynamic vs. Surveillance Pricing It is important ...