Variable pricing is always because supply and demand are constantly in motion.
I see a sign on the Taco Bell advertising a $4 per hour premium ($21 per hour) for people who are willing to work late night and will stay to close the place up. I see a possibility of restaurants charging more for food at 11pm rather than 1pm. Which already happens at many places via discounts for “lunch specials” available only during noon hours.
Same reason for hotels to charge different prices for different nights.
You can throw in price discrimination / price segmentation and collect different prices from different people for the room night. Similar to how retail businesses give a lower price to people willing to spend their time finding coupons.
I see a sign on the Taco Bell advertising a $4 per hour premium ($21 per hour) for people who are willing to work late night and will stay to close the place up. I see a possibility of restaurants charging more for food at 11pm rather than 1pm. Which already happens at many places via discounts for “lunch specials” available only during noon hours.
Same reason for hotels to charge different prices for different nights.
You can throw in price discrimination / price segmentation and collect different prices from different people for the room night. Similar to how retail businesses give a lower price to people willing to spend their time finding coupons.