MADRID – The concept of different or dynamic prices for plane tickets or hotels in summer has always been in Spain. Nevertheless, the catering industry in Spain is now also playing with this concept. Digitization seems to be the keyword for catering businesses to be able to make more profit.
For example, a delicious cappuccino on Saturday may be more expensive than the same cup on Monday. Or that a dish in the evening is more expensive than the same dish at midday.
Spanish catering industry triggered by dynamic prices
However, at the moment, this concept is still early in Spain. But sources from the hospitality sector confirmed to Spanish press agency EFE that many hospitality owners are interested in this way of doing business. Digitization is of great importance for these “dynamic prices”. Because in this case catering establishments will work with digital maps that can be viewed, for example, by scanning a QR code.
Power of artificial intelligence and algorithms
Behind this technique is an algorithm that uses artificial intelligence to determine which price to show. Catering owners can also choose to make certain dishes more visible based on stock or because a dish can be prepared more quickly. This principle dates back to the 1980s with airlines. And, more recently, has been adopted by hotels, car rentals and, for several years, Uber.
Chain Madrid makes more profit after introducing dynamic prices
The first chain in Spain to experiment with this in 2020 is Grupo Arzábal with various restaurants in Madrid. Restaurant owners fear mostly negative reactions from customers. Although,this chain can say that they have made 30% more profit since then. Companies offering techniques are also currently talking to home delivery services and international giants such as McDonalds.
Ideal moment for Spanish catering
Experts from the catering sector speak of the ideal time to introduce this in Spain. The hospitality industry has been struggling since the corona pandemic and unions say that this sector has been lagging behind in terms of digitization and serving online customers for years. This technique not only helps catering establishments pay faster, but also gain more insight into the needs of customers, respond to them and ultimately also make more profit.