A Sydney hotel charging an extra 30 per cent for drinks after 10pm has been criticised for the "excessive" price hike, but increasing the cost later at night has become common practice in the industry.
The Oxford Hotel in Darlinghurst has been targeted by people leaving one-star online reviews after a patron complained about the surcharge.
One Reddit user posted about their experience of being charged $24.36 for a jug of beer at 9.18pm.
They said about an hour later another jug of the same beer cost them $33.50.
"When I asked the same staff member who served me he said there was a late-night surcharge after 10pm," the customer wrote.
After initially declining to comment, The Oxford Hotel responded to criticism on Wednesday saying pricing had gone up due to "increased operating expenses", including DJs, drag performers, security and penalty rates.
"The alternative to pricing that increases in line with operating expenses (and the entertainment being offered to our guests) is to increase prices across the board. We don't think that's fair," the hotel posted on its Instagram page.
The post also said the 29 per cent increase reported by the customer on Reddit was a mistake and should have been 8 per cent.
While few charge as much, many Sydney bars use "tiered pricing", upping the prices as it gets later.
Kelly's on King in Newtown has a 10 per cent surcharge from 10pm to help cover the cost of security and staff wages.
Notice of the surcharge is provided on its drinks menus.
Kelly's on King general manager Brodie Parish said the practice had been in place since he started working there three and a half years ago.
"It's actually been in place at every venue I've worked at over [the past] 10 years," he said.
Mr Parish said he was not aware of any complaints about their prices, but said he could understand frustration at other venues that take it "to the excess".
"I think what people are upset about is the degree of the increase … and the fact that it is not communicated," he said.
'Not surprised'
Finance writer Joel Gibson told ABC Radio Sydney surcharges during busy periods and public holidays had become the norm.
"We've become used to paying surcharges on weekends over the years," he told Afternoons presenter Josh Szeps.
"We've now become accustomed by companies such as Uber to surcharges in peak demand periods.
"Now, if they're asking just to pay extra to pay their staff late at night, then I'm not surprised by it."
But he said he was not entirely comfortable with the practice.
"The competitive market doesn't necessarily work freely after 10pm," Mr Gibson said.
"A table of people sitting at a pub at 10.05pm aren't likely to get up and go somewhere down the road just because the price has gone up 30 per cent.
"The pubs know that they're onto a good thing."
The Australian Competition and Consumer Commission encouraged consumers with concerns to raise the issue directly with the business or lodge a complaint with a fair trading or consumer affairs agency.
"Under the Australian Consumer Law, businesses should not mislead consumers on the price of goods or services, including any unavoidable or preselected additional charges that might apply to the transaction," an ACCC spokesperson said.
"Businesses should strive to give consumers clarity and accuracy up front about the prices of their goods and services."
