Surge pricing: How demand may affect fun time - and your wallet

Dynamic pricing may turn off some, but can benefit others if done well: Experts

- Kolette Lim

Ms Rosemary Lum was eager to take her daughters, aged six and eight, to children’s theme park KidZania when it reopened on May 16. But when she went to book the tickets online, she saw that despite the ongoing promotion that slashed prices by half, a ticket for one child would still set her back by about $60.

“I was shocked to see the new prices,” said the homemaker, 43, who recalled that she paid about $60 for a standard child ticket to the theme park in 2019. “Hopefully the prices will drop when the crowds cease.”

According to KidZania Singapore’s website, dynamic pricing is applied for tickets to the theme park. This means that prices fluctuate based on real-time supply and demand, a strategy commonly used for flight tickets and private-hire rides such as Grab.

In response to queries from The Straits Times, a spokesperson for KidZania Singapore said the dynamic pricing model allows the theme park to “manage demand more effectively”.

“By adjusting prices based on demand, we can balance visitor flow, avoid overcrowding and optimise the experience for everyone,” the spokesperson added. “It also provides flexibility for visitors to choose less crowded times at potentially lower prices. Visitors have the option to choose times that fit their budget, making it fair for everyone.

“The pricing will be clearly indicated during the purchase process to ensure transparency.”

The maximum price that a ticket can potentially reach is $120 and the number of tickets sold daily will be capped at 1,800.

The fluctuating prices are expected to benefit Singaporeans, added the spokesperson.

“We do expect tourists to purchase tickets closer to their date of travel and, hence, pay a higher, more premium price to enjoy Singapore attractions.”