To put it simply, dynamic ticket pricing is when companies selling tickets to an event such as a music concert change the pricing depending on interest. This can mean two people have bought tickets for the same show at very different costs.
Dynamic pricing is where companies change the price of tickets depending on demand. It isn’t just for one area of entertainment either, it’s across every service. Whether it’s a music concert or a flight, the companies hosting these tickets will alter them depending on the interest.
Concert tickets for popular artists will start off at a high price point and continue to increase. However, if tickets still remain closer to the event, they may be dropped dramatically, because they would rather sell tickets for less, than not at all.
It varies dramatically because for many events, prices are set out prior to the event and the longer you leave it to buy one, the more the cost will increase. This is usually set out in tiers like Early Bird, First Release and so on until they reach Final Remaining tickets which are often considerably higher than the early bird option.
The main positive with this method is, the prices are outlined from the beginning. Consumers know what they will be paying and if they get there late, so be it. They had the opportunity to buy tickets earlier on. However, with dynamic pricing, this isn’t the case.
When it comes to dynamic pricing, it isn’t as black and white. Even if you’re there waiting, credit card in hand when the tickets are first available, it doesn’t mean you will be able to purchase a cheaper ticket. In fact, often, it’s quite the opposite.
How Dynamic Pricing works
Imagine a concert starts selling tickets at £50:
| Situation | Possible Price |
|---|---|
| Tickets first released | £50 |
| Sales are slower than expected | £40–£45 |
| Artist announces a special guest | £70 |
| Event nearly sold out | £100+ |
Where is Dynamic Pricing used?
Dynamic pricing is common in:
- Airlines
- Hotels
- Ride-sharing services
- Sports events
- Concerts and festivals
- Theme parks
Is Dynamic Pricing fair?
In all honesty, no. The only people benefitting are the booking companies such as Ticketmaster, Ryanair etc. The consumer is the one who misses out. Often concerts, football matches and other huge events sell out so fast that consumers have no choice but to book as soon as the tickets go on sale.
Many spend forever in a queue and when they finally get through, they take whatever tickets they can get quickly before they sell out. However, this means they are paying the inflated prices for the same show. It seems incredibly unfair.
In my opinion, ticket prices should be set before the event tickets are on sale and made public knowledge. That way, there are no nasty surprises. There’s nothing worse than getting your hopes up that you’ll be able to secure those tickets, only to be priced out.
In fact, Ticketmaster had quite the uproar due to their dynamic pricing for the hugely popular band Oasis. Not only did they oversell tickets, but they also put the prices so high that many just weren’t able to pay to attend. Pretty unfair.
If you happen to get lucky and check later in the evening, you could find you are able to get better seats than your friend, for less than they spend, which in my opinion, is completely unfair. However, these large corporations will continue to do it.
