Influence people

Thursday, June 16, 2016

If You Have to Ask, You Can't Afford It

A new study from Cornell's Center for Hospitality Research shows restaurants will soon start charging diners for reservations.

"This is a logical extension of the revenue management principle of pricing a service to match demand," says Sheryl Kimes, co-author of the study.

Some app providers already charge a premium for hard-to-get reservations at trendy spots; and some auction off those reservations.

Demand, surge and dynamic pricing in fact surrounds us (think of your electricity company, local toll roads and summer rental properties), even though—as Uber recently learned—it's considered inhospitable.

Only restaurateurs and economistswho insist it boosts supplywould say demand pricing isn't just plain, old-fashioned price gouging.

What would you say?

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