The term “happy hour” was first used by sailors in the Navy to describe the time when they could take a break from their regular responsibilities onboard and just relax in the 1920s, during the Prohibition era. Civilians who would drink before going to supper then picked up the expression. This is similar to pre-gaming, except alcohol was not allowed in those days.

The prohibition period only served to encourage the habit of drinking after (or during) work hours. Restaurants and bars first used the term “happy hours” in the 1960s to refer to a temporary (often hourly), ongoing drink discount intended to draw customers during off-peak hours (usually, after-work hours).

Which kind of companies (services, goods) can profit from happy hours?

Prior to now, only bars and restaurants employed the “happy hour” notion to increase sales of beverages and snacks during the afternoon hours between lunch and dinner, when there were often fewer customers.

For the business, the major goal of happy hours is to capitalise on off-peak hours and generate extra revenue during such hours. Therefore, practically any seasonal or irregular business can profit from such a strategy.

Ideas for happy hours at electricity businesses (differential tariff)

Power plants must operate continuously throughout the day and night since switching them on and off would require too much effort to restart them in the morning and energy is difficult to store. The daytime is when people utilise energy the most. Energy generated at night typically results in a significant loss for the electrical provider (and environment!). A “cheaper” night rate has been established by many electrical providers; all energy used at night is charged less than energy used during the day. It urges individuals to use energy at night (off-peak season). It does not provide the electricity companies with more income (the same people would have used the same energy, just during the day)

Ideas for Happy Hour in Gyms (and other sports facilities)

Have you ever heard of gym memberships that are less expensive early in the day or on weekends? The gyms also experience highs and lows. On Mondays and Tuesdays, there is a lack of space in the classes and on the machines. On Saturdays and Sundays, nobody goes to the gym because they are too busy (or simply sleeping).

There are particular memberships available that are less expensive that only allow you access to the gym during off-peak times (this isn’t true of all gyms, but the number is growing).

Ideas for Happy Hour in Transportation

Public transportation: During peak hours, the London congestion charge discourages driving into Central London. Peak hours have increased fares on the Long Island Rail Road and the Washington Metro.

Taxis: Typically, the mornings are busy (people heading to work), the days are rather sluggish, and the afternoons and nights are busy once again (people heading from work to home, to the airport, or to parties and returning from them).

Users of on-demand ridesharing applications like Uber, Lyft, Taxify, Cabify, and others have complained throughout the years about the dynamic pricing that takes effect anytime there is a spike in demand. But that’s partly because dynamic pricing has always resulted in higher prices.

With the introduction of “Happy Hour,” a pricing mechanism that lowers prices during periods of low demand, Uber, Lyft, Taxify, and Cabify are attempting to alter the perception of the client. All companies reduce their prices by between 10% and 50% as compared to prior models. Each business has its own set of promotion guidelines, but Cabify drastically deviated from them in Portugal by distributing Strongbow cider to passengers during happy hours.

Utilize originality in your business!

There are a lot more businesses out there, even if this post has already covered a lot of inspirations from many industries that can profit from happy hour, flash sales, and dynamic pricing models. Hairdressers, massage therapists, manicure parlours, spas, and healthcare (physiotherapists? dentists?) are just a few of the numerous industries that experience seasonality or daily off-peaks throughout business hours. By offering discounted services during that period, you can persuade clients to skip work during those hours and visit your salon, attract clients who aren’t currently employed (students, stay-at-home moms, job seekers), and increase sales.