Rafi Mohammed

Of Course Disney Should Use Surge Pricing at Its Theme Parks

Posted on June 4th, 2015 (0 Comments)

Disney is reportedly considering implementing surge pricing at its theme parks, which makes total sense. Demand is stronger on some days relative to others – hotels and airlines change prices based on demand, why shouldn’t Mickey. While it makes sense to raise prices during peak periods, I think the bigger play is actually focusing on the growth generated by offering low prices on select “slow period” days.

Please check out my latest piece for the Harvard Business Review which discusses surge pricing. While peak/off-peak pricing is typically used to change demand in fixed capacity industries – I extend the applicability of surge pricing to instances when capacity is not fixed as well as when supply varies.

As always, thank you for reading my blog!

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