Industries where partitioned pricing has historically been prevalent include air transportation, lodging, auto dealerships, auction houses, online retailing, and sports and entertainment ticketing.
Drip pricing of unavoidable additional charges on air fares is outlawed in the European Economic Area, Australia, and the United States.
[11] In October, 2022, USDOT proposed adding regulations for transparency on ancillary fees like baggage, and requested public comment.
For example Spirit Airlines from August 2010 [21] and Wizz Air from October 2012 [22] started surcharging passengers who travel with conventionally-sized hand luggage.
[23][24] An example of airlines' drip pricing is shown in Robbert and Roth’s (2014) research which states “You click on “Book Now” and enter your personal information.
In Italy, where city taxes are often omitted from published prices, this is enacted into national law under Article 49(1)(e) of Decreto Legislativo 21 febbraio 2014, n.21.
[30] According to the FTC letters, “One common complaint consumers raised involved mandatory fees hotels charge for amenities such as newspapers, use of onsite exercise or pool facilities, or internet access, sometimes referred to as ‘resort fees.’ These mandatory fees can be as high as $30 per night, a sum that could certainly affect consumer purchasing decisions”.
The warning letters also stated that consumers often did not know they would be required to pay resort fees in addition to the quoted hotel rate.
Consequently users of Airbnb's Australian web site now see the total price of a stay including all unavoidable charges at every stage of the booking process.
[34] In October 2022, the United States Federal Trade Commission announced a proposed rulemaking on the practice, and requested public input.
This can have a negative impact on the purchase itself as if consumers feel they are being treated unfairly due to drip pricing strategy, they may consider substitute goods and services.