easyEverything's Pricing Policies
Subject
Economics
Publication Year
2001
Abstract
Founded in 1999 by Stelios Haji-Ioannou, easyEverything quickly became the largest chain of Internet cafes in the world. Stelios used his experience in the airline industry to introduce dynamic pricing in Internet cafe. The price in the cafes is automatically updated every 5 minutes according to capacity utilisation and, far from discouraging potential customers, the new system has been widely accepted. Although this pricing scheme successfully manages to smooth demand, preventing queues from forming or having empty stores, Stelios believes that it can be improved. The challenge ahead is to find new ways to increase store occupancy without having to decrease prices below reasonable levels.
LBS Case Number
CS-01-022
Project Funder
ESRC Standard Grant
Supervisor
Courty P
Available on ECCH
No
