That’s odd, I thought, realizing that the package on my laptop — identical flights, hotel, room type — was $117 more (6.5% more) than the price on Orbitz’s app. A quick scan found that prices of identical vacation packages often differ between Orbitz’s app and website. When I shared my results with Expedia (the parent company of Orbitz), its spokeswoman explained that the pricing differences I found between the app and website can be due to the fact that its suppliers allow different prices to be offered to mobile customers as well as members (no fee to join) who are logged in.
The bottom line, though, is that based on a few characteristics (app or web, signed in as a member or not), a rudimentary type of personalized pricing is occurring: Some customers are receiving different prices than others. The result is a more profitable customer base, with some shoppers paying more than others. Much like car salespeople, web retailers can electronically evaluate the characteristics and actions of each shopper to create a profile that generates a personalized price. Retailers first “negotiate” with each customer by personalizing prices based on their profile.
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