Economics

Drip Pricing

Drip Pricing

Drip Pricing is advertised at the beginning of an online purchasing process and additional fees and charges which may be unavoidable are then incrementally disclosed. It may initially withhold mandatory fees, such as local hotel taxes or booking fees, or may not include add-ons that are required to use a product or service. Drip Pricing is frequently associated with the hospitality industry. It is to gain a consumer’s interest in an attractively low headline price, but the final price is not disclosed until the consumer has invested time and effort in the purchase process and made a decision to purchase.