Drip Pricing

Drip pricing refers to the practice of advertising a product or service at an attractive base price, then incrementally adding mandatory charges — booking fees, service fees, processing fees, taxes, delivery charges — at successive steps in the purchase journey. By the time the customer reaches the final checkout page, the total cost may be significantly higher than the advertised price, but the psychological commitment and time invested make abandonment less likely.

Drip pricing is widespread in the airline, ticketing, hotel, and subscription industries. Charges that are genuinely optional (travel insurance, seat selection) are less problematic than mandatory fees that were always part of the cost and could have been disclosed upfront. Regulators in many countries have taken action against drip pricing, particularly where unavoidable charges are hidden until late in the checkout flow.

Consumers should compare all-in prices across competitors rather than headline prices, and be alert to fees added at the final step. Many jurisdictions now require that unavoidable fees be included in the advertised price, and price comparison regulations continue to tighten.