Dynamic pricing, a model that adjusts prices based on demand and other factors, is now being used at hotel lobby shops in Las Vegas. This practice, common for hotel rooms and event tickets, is expanding to include everyday items like bottled water and snacks.
According to a report from the Las Vegas Review-Journal, surge pricing has been observed at several major hotels along the Strip, including the Bellagio, Caesars Palace, Harrah's, and MGM Grand. The paper’s summer interns found that prices for items such as sunscreen and energy drinks could fluctuate significantly depending on the day or time.
Las Vegas has recently seen a drop in visitor numbers. In response, some resorts have eliminated unpopular charges like resort fees to attract guests. However, dynamic pricing in lobby shops offers another way for hotels to increase revenue. Automated point-of-sale systems allow these shops to change prices instantly across many products.