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Your Location Data May Be Used to Set Pricepoint for Airfare and Other Items

Your Location Data May Be Used to Set Pricepoint for Airfare and Other Items

Something we often have to worry about is how our data is being used or manipulated. What we are finding out now in a new study is that not only is our location data being used, it's being used to manipulate the pricepoint for things we buy such as airfare. You might be paying more just because of where you live.

New Study

This study was conducted by TheBestVPN, and it showed that you could pay nearly double, or possibly even more, for what you are purchasing because of your location. It's perceived that you have the ability to pay more or less just based on where you live and your assumed income.

This is known as “dynamic pricing.” Businesses charge based on how much you are perceived to be able to pay. But it can also be considered price discrimination, and like any form of discrimination, may not be favorable, as the price could be based on race, age, religion, gender, etc.

I'm more likely to get lesser service at a restaurant because I'm a woman, and servers assume I am less likely to tip well than the man sitting at the table next to me. That may or may not be the case, but that's the assumption.

As The Next Web points out, Apple Music subscriptions cost differently based on location. In the U.S. the price of a monthly subscription is $9.99, but it's $13.33 in the U.K. Those in India pay only $1.75 per month.

Booking airfare can also change pricepoint. It doesn't just matter where you're traveling from and to. It also depends on where you are when you book the trip, which could explain a lot. The prices of airfare change often, weekly, daily, and it's a matter of getting the right price at the right time.

But apparently it also matters where you're located when you book. Cross-country flights can differ as much as $1000.

Make Sure It Doesn't Happen to You

There are things you can do to be sure you aren't paying based on your location. Obviously, if you're in an area where it's lower, you don't want to change it, but if you're in a more expensive location, you do want to change this and can by following these tips that will help prevent all discrimination pricing.

Paying a Fair Price

You shouldn't have to pay more because of where you're located, just as you shouldn't have to pay more based on other discriminations. Yet it happens. You can follow these tips to make sure it doesn't happen to you.

Have you noticed this happening to you before? Have you noticed you're paying more or less depending on your location data? Let us know in the comments section below.

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