Dynamic Pricing Done Right - and Wrong: Disney vs Uber

Dynamic Pricing Done Right - and Wrong: Disney vs Uber

Dear Friends,

dynamic pricing can be done right - and wrong: we compare how Uber’s surge pricing caused backlash, while The Walt Disney Company used variable pricing to manage demand smoothly. Transparency and framing make all the difference See below.

Great endorsement from Pricing Strategist Antonio Rius Ceja on the Spanish version of ‘The Pricing Model Revolution’ stating here: ‘I just finished (again) this book on pricing strategy, "Pricing Revolution" by Dan. I first read it almost a couple of years ago and I’m sure that is a must-read for anyone interested in the subject. It offers valuable insights and practical examples, making it accessible even for those new to pricing and revenue management. Despite its age, the book remains highly relevant and is a go-to resource for enhancing performance and profitability. Whether you're a seasoned professional or just starting out, "Pricing Revolution" is sure to enrich your understanding of pricing strategy, revenue management, and optimization’.

Antonio’s book shot - lovely!

Please continue sharing your photos with the book!


In case you missed them, here selected posts:

New book release: the Italian version of ‘The 10 Rules of Highly Effective Pricing’ is available. Find the deep dive here.

New Strategies & Tactics pricing training: join us to learn how to boost profits with strategies & tactics with an insightful onsite training in Barcelona hosted by EPP. Find a deep dive here.

New topline transformation 1/5: honored to have been chosen as trusted advisors at global leader Saudi Aramco in UK and Saudi Arabia. Find a deep dive here.

New topline transformation 2/5: honored to have been chosen as trusted advisors at industry leader Motiva in Huston, Texas, US. Find a deep dive here.

New topline transformation 3/5: honored to have been chosen as trusted advisors at industry leader S-Oil in Seoul, Korea. Find a deep dive here.

New topline transformation 4/5: honored to have been chosen as trusted advisors at industry leader Valvoline out of Kentucky. Find a deep dive here.

New topline transformation 5/5: honored to have been chosen as trusted advisors at industry leader Luberef out of Saudi Arabia. Find a deep dive here.


Uber’s Surge Pricing: Smart Economics, Bad Optics

Uber didn’t invent dynamic pricing — airlines and hotels have used it for decades — but they brought it to the streets. When demand outstripped supply, Uber increased prices to incentivize more drivers to hit the road and allocate rides more efficiently.

On paper? Economically sound.

In practice? Often infuriating.

Customers frequently felt caught off guard, with prices doubling or tripling during storms, concerts, or New Year’s Eve. What went wrong?

  • Lack of transparency: Sudden, sharp increases without much warning.

  • Emotional timing: Price hikes during stressful or vulnerable moments (bad weather, safety concerns).

  • No clear value narrative: Higher prices weren’t linked to better service or experience.

The result: backlash, press coverage that framed surge pricing as predatory, and a trust deficit Uber is still trying to recover from.

Disney’s Flexible Ticketing: Gradual, Predictable, and Fair

Now consider how Disney approached a similar challenge: long lines, overcrowded parks, and intense demand for certain days.

In 2018, Disney introduced date-based ticket pricing at its U.S. parks. Prices would vary depending on expected demand — higher during holidays and weekends, lower on slower weekdays.

But here’s what they did differently:

  • Upfront communication: Clear calendars showing pricing weeks or months in advance.

  • Customer control: Guests could plan around the pricing — come during cheaper days or pay more for peak access.

  • Framing the benefit: Disney emphasized a better experience (shorter lines, more comfort) rather than justifying the price itself.

Instead of backlash, Disney saw higher revenue per guest, better crowd control, and minimal PR fallout.

 The Lesson: It’s Not Just What You Charge — It’s How You Frame It

Both Uber and Disney adjusted prices based on demand. But Disney gave customers control, clarity, and context — while Uber left users feeling surprised and penalized.

If you’re considering dynamic pricing, ask yourself:

  • Do customers understand why prices are changing?

  • Can they plan around it?

  • Is there a perceived improvement in value or fairness?

Dynamic pricing doesn’t have to feel sneaky. Done right, it can feel empowering.

Take It Further: Ways You Can Apply This

  • Introduce tiered pricing for peak times — but announce it in advance and make it predictable.

  • Use a visual calendar or tool to help customers choose pricing that fits their needs.

  • Tie higher prices to improved experience, faster service, or exclusivity — not just scarcity.

  • Collect feedback to monitor how price changes impact trust and perception.

Dynamic pricing is here to stay. Just make sure your customers stay with you.

Have you experimented with dynamic pricing in your business? What worked — or didn’t? We’d love to feature your story in a future issue.

I’d love to hear your thoughts.


Interested in learning more about pricing? You will find insights in the books The Pricing Model Revolution, The 10 Rules of Highly Effective Pricing and Pricing Decoded.

There are many books on pricing. The Pricing Model Revolution is the best read for managers wanting a review of several innovative pricing methods’. Philip Kotler, S. C. Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University

Get your copy of ‘The 10 Rules of Highly Effective Pricing’ here.

Get your copy of ‘The Pricing Model Revolution’ here.

Get your copy of ‘Pricing Decoded’ here.

You are most welcome to share your views, feedbacks and own pricing experiences. Thanks a lot for your interest and support!

 

 

Dennis Knodt

Co-Founder Valuent | Unhappy w/ Salesforce? Better Call Dennis

2mo

Danilo Zatta, PhD, MBA how would you recommend Uber to handle dynamic pricing then? The entire uber experience lives from adhoc bookings when I need ride. I've never looked up a ride more than a few minutes before I needed to book the uber. Whereas a Disney visit might be planned months in advance. So I'm curious how a more adhoc service like uber could do better with their surge pricing? Or how would you approach it if you were the Uber CEO?

Jean Salim

Sr Pricing Manager MBA Six Sigma

2mo

Dan is the pope of the topic

Finlay Bright

🔍 Expert Recruiter | Pricing & Data Science Talent across Europe

2mo

I highly recommend subscribing to Danilo's newsletter - he shares such valuable weekly insights into the pricing industry!

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