“Drip pricing”: The risk strategy airlines use is to charge you more, rather than avoid it

Shopping for flights on your phone is easy, convenient – and secretly shopping for you extra money.

The majority of consumers trust mobile plans. According to a * surveys more than half of February 2022 travel service purchases (51.4 percent) were made by over 3,000 users of mobile devices.

But who cares about grief? Sneaky ‘drip pricing’ strategies mean you could end up paying more if you trust your phone.

What is drip pricing?

Pricing is a popular selling strategy. It will show a firm a lower price upfront, then added gradually through the purchasing process.

This is especially common with they travel, where fees such as baggage and seat selection are to be added to the course. US airlines collected $5.3 billion obstacles fees alone in 2021, according to the release of Transfer Statistics.

However, a 2021 study in the journal Marketing Science found that shoppers tend to make suboptimal decisions under these big drop-off situations, that is, when hidden fees are applied during the checkout process.

Shoppers tend to compare initial prices through competitors, which are lower rather than higher the highest price

“When the firms dropped the pricing strategy, the initial” the price is almost always lower how competitive everything is on price,” says Shelle Santana, assistant professor of marketing at Bentley University and one of the study’s authors.

“But at once they begin to add pleasant things, such as a checked the bag; seat options, etc.

Clients have gone through a long process, and accept all the added fees reluctantly. They assume it will be too much of a hassle to go over and find another option, even if they do except money

“Consumers perceive the high search costs associated with the drop-off process, and think they’re saving less money than they actually want,” Santana says.

Why is shopping on the phone for travel a bad idea?

Switching to travel is far from simple, and usually requires switching between multiple tabs and apps to get the best deal. This is difficult to do on the phone.

Consider the common decision of whether to buy a flight with either cash or miles. This involves several steps.

First, you’ll need to search on the airline’s app or website for availability, likely while switching to your personal calendar to check dates. Then, look for the flight instrument in the third party, as it is Google Flightsfor the value of the cash value before the redemption value in miles versus dollars. When you are determined the best optionYou will need to navigate through the entire checkout process from both cash and flight options to determine the true final price.

This lengthy process is almost impossible on a mobile phone.

“I almost always” Shop to travel Santana warns at the desk.

“I like to have several tabs open at the same time and toggle between them to make sure I understand the price differences and drivers across firms.”

About Franklin Cheatham

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