Why Does Airport Pickup Cost More?
We are arranging a car to take us from our flat to Heathrow Airport early Saturday morning, then return us on Monday evening. The price going to the airport is ₤28, the price returning is ₤38. Why the difference?
One possibility is cost-based price discrimination: the driver may have to wait at Heathrow, since the plane and retrieving our baggage may be delayed. Another is that the prices are set to match the differential set by metered taxis to reflect waiting time for fares at Heathrow (although I would think that competition among car services would eliminate that differential). I don’t see how this differential could arise from demand-based price discrimination; and neither of the other explanations seems very satisfying.