This article makes an interesting comparison and analysis on why HomeAway changed policies so quickly. The bottom line is that companies will raise prices when they can. Well, at least some will.
How does this happen? In both incidents, the two companies possess something of value that people needed, not wanted. In Shkreli’s case, customers needed the product to survive. For owners and managers, the need is a financial one, which can affect one’s way of life.
Why do companies like these feel they can instantly shoot-up the price of their product? Because YOU NEED THEM!
Needs are way stronger than wants. Products that fill “needs” are much more susceptible to drastic price hikes than “wanted” products or services.
The big problem is rooted in the NEEDINESS. When someone needs something people will do desperate things out of that need.
There are very large groups of owners and management companies who want to leave their HomeAway dependence behind them but they can’t- they’re stuck between a rock and a hardplace and can’t move. And when you can’t leave, they don’t have to worry about satisfying their customers with great service.