Paying a premium for a flight during the school holidays or a cab at peak hours might be expected but fluctuating charges – otherwise known as surge pricing – could become the norm in other industries, say experts.
According to Omar Merlo, the academic director of strategic marketing programmes at the Imperial College Business School, surge pricing – widely known as dynamic pricing – is when retailers adjust their prices in response to supply and demand, meaning customers are charged higher prices when demand spikes.
