Quote:
Originally Posted by Osem
The reason you don't tend to pay more for a TV at certain times of the year is that the supply of TV's isn't restricted at those times of year. If there was a sudden large spike in demand for TV's for some weird reason you'd find prices would go up just like prices of HDDs went up when there were supply problems in the Far East a few years ago. As for travel, it's common to pay more for the same travel during peak periods because the same supply/demand argument applies.
During holiday times there is far more demand for the same supply so prices will go up and if companies were prevented from doing I'd have thought they'd have to cover that by increasing their prices for other times of the year.
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It's not just a case of putting prices up in the summer. They have to put prices down in quieter periods in order to compete for the reduced number of customers. These businesses have fixed costs and they need cash flow throughout the year.
You simply can't legislate to force them to reduce high season prices to match the low season ones. In many cases the low season prices barely cover operating costs.