Gender pricing, also known as Pink Tax, is a pricing strategy that discriminates the cost of the same product or service based on the gender of the end customer. This practice is still prevalent in most industries, and it is often strategically employed in dynamic pricing models.

Depending on the industry, it can be either a good or a bad thing for female consumers.

A few industries taken for this study are:

  • Bus

  • Airline

  • Body Care

  • Jewellery

  • Clothing

But in this article, we will focus particularly on the travel sector.

Clothing Industry: Women often face a 30% price disparity compared to men for identical clothing items, exemplified by instances like a plain white t-shirt priced at Rs. 680 for females and Rs. 500 for males.

Jewellery Industry: Gender pricing in jewellery shows a 20% price difference between male and female customers for the same type and weight of products.

Body Care Industry: In body care, women frequently bear a substantial cost burden, with prices soaring as high as 150% more than those for male customers.

Travel Industry: Gender pricing in the travel industry takes a tailored approach to meet the specific needs and preferences of female travellers.

Airlines often give discounts, usually 10% to 15%, to encourage solo female travellers.
Safety and comfort for women are prioritised, with arrangements like seating solo female travellers next to other women.

Travel companies also tailor their offerings to suit female preferences. A study also found out that females are more willing to pay a higher price for more sustainable and safe air travel.

In the bus industry, gender pricing is about making female passengers feel safe and comfortable while also making sure the buses have enough passengers.

To encourage women who travel alone, some bus companies offer discounts. Depending on the operator, these discounts can go up to 20%.

Generally, a 10% discount is given to the female passengers sitting beside other single female booked seats.

Some even have special seats reserved for women next to other women, especially on long trips. 

This helps prevent uncomfortable situations and adds to security. This ensures effective 

inventory management  without compromising on the revenues. 

For the bus companies, it means fewer empty seats, which is good for business. This approach not only helps the companies but also empowers women to travel on their own.

On an average, around 5-10% of the seats are booked by single female passengers, depending on the operator and the brand.

It promotes fairness and diversity, creating an environment where female passengers can feel respected and secure, which encourages more women to choose bus travel. 

Gender pricing, or the “Pink Tax,” remains prevalent across various industries, impacting female consumers differently. While disparities persist in sectors like clothing and body care, the bus and air travel industry has adapted by offering tailored services and discounts to enhance safety and comfort for female travellers, without leaking revenues or occupancies.

To keep up with this dynamic environment, it is imperative to learn how AI pricing engines can help you do that.

Book a free demo of our automated retail solutions or contact our optimization experts at info@sciative.com.

To learn more about our AI-powered dynamic pricing tool VIAJE, reach out to us.

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