What is Drip Pricing?

About Drip Pricing:

• It is a pricing technique in which firms advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process.
• It may initially withhold unavoidable fees, such as booking, service, resort, or credit card fees, local hotel taxes, or any other add-ons like internet access or certain facilities and amenities that are required to use a product or service.
• These additional and often mandatory costs are then disclosed by the seller one by one or “dripped” to the buyer at the point of purchase. It is commonly used in the hospitality and travel markets, as well as for other online payments. 
• Companies may utilise a price-dipping approach to entice a customer into starting the purchase process, at which point the customer may not want to restart his or her search, once they find out the added costs.
• It can be frustrating for consumers, who typically want to know upfront how much a product or service will cost and may feel duped by later add-ons. It can make comparison shopping more difficult and penalise sellers who are more transparent with their pricing.
• An example of price dipping is the cost of an airplane ticket that doesn't include baggage fees.