Drip Pricing: Hidden Fees Added Later
Advertised prices that rise as fees are added at checkout. Regulators are cracking down.
By Felix Narayan | Oct 22, 2026 | 5 min
Drip pricing is when a low headline price is shown first, and extra mandatory fees are added during the buying process.
Examples include booking fees, resort fees, and service charges.
I Why it works
Once people have invested time in a purchase, they are reluctant to start again. The low headline price anchors expectations.
II Common examples
- — Ticket booking fees
- — Hotel resort fees
- — Airline seat and bag fees
- — Delivery and service fees
III Regulation
Several regulators have introduced or proposed rules requiring mandatory fees to be included in headline prices.
IV Protecting yourself
Compare total prices at checkout, not headline prices.
V The psychology behind it
Drip pricing exploits several biases. Anchoring makes the first price stick in your mind. The sunk cost effect makes people reluctant to abandon a purchase after investing time. And partitioned pricing — breaking a total into parts — makes the total harder to process. Research has found consumers often end up paying more and searching less when prices are dripped. See our anchoring guide.
This is general educational information about economics, not financial, investment, or tax advice. Consult a qualified, licensed professional before making financial decisions.
Further reading
- 1. Price Skimming vs Penetration Pricing
- 2. Charm Pricing vs Round Pricing: When Each Works
- 3. Why Prices End in .99