Dynamic Pricing in Towns and City Centres Could Move the Economy in the Right Direction

UNITED KINGDOM / AGILITYPR.NEWS / August 03, 2020 / Dynamic Pricing could be the way for companies to survive in the short term as the government encourages people back to work, say leading tax and advisory firm Blick Rothenberg

David Hough, a partner at the firm said: “ This may be one way for business that depend on city centre footfall to move forward, but much greater focus needs to be given by government in helping these businesses to pivot towards a new way of working rather than rely on a return to traditional working patterns..

He added: “The pandemic has accelerated digital transformation and many companies have found that whilst working remotely on a full-time basis presents challenges that would be overcome by a partial return to offices, many firms can work effectively with their people working at home.

“Therefore, companies that depend on city centre workforces for their living really need is guidance and support on adapting for the future.”

David said: “This is why, leisure businesses should look to dynamic pricing to allow greater flexibility for its customers. This would allow pricing to adjust with demand, sending push notifications to regulars that attendance is low, and prices reduced accordingly. As demand increases so does the price which can encourage customers to visit later in the day when the venue is closer to capacity. 

He added: “ The Government wants employees to return to their offices which would be a boost to the world of food retailers, bars and gyms as well as providing greater collaboration and confidence that more face to face working is likely to bring, but there needs to be a far greater investment in technology and help from government to increase the data available and allow companies to find efficiencies or other gains to counter reduced footfall.

David said: “If the leisure industry for example had a greater insight on commuter habits then they could act accordingly. If for example they knew about the numbers of people coming into our towns and cities at different times of the week food retailers and transport companies could adjust their supply reducing the costs of wastage or of unoccupied buses and taxis.”

He added: “This could work well for gym’s but also for restaurants, pubs and cafes as better use of data allows stock and staffing levels to be efficiently managed and dynamic pricing allows high demand to be capitalised on as well as allowing a more strategically resourced business to manage demand by increasing its prices, encouraging customers to return later when prices have reduced reflecting a lower footfall.

David Hough said: “Businesses do need to change their ways of working. Going back to past practices will see many fall behind. A busy city centre will be a sign that the current situation is largely behind us but for the time being many businesses will continue working remotely due to employee dependence on public transport.

He added: “Going forward more companies will embrace smarter working which will reduce footfall in traditionally busy parts of the city for the economy. Therefore, whilst bringing people back into the city would stimulate leisure and hospitality businesses that depend on those workers in some cases it will not be enough to counter the impact of the longer-term impact of changing trends.” Greater focus must be given on helping these businesses pivot towards a new way of working.