Are ticket prices that depend on demand, really equitable?
9 November, 2010 at 4:13 am Tim Roberts ARTS Australia Leave a comment
There seem to be quite a few articles (re-purposed press releases?) about dynamic pricing lately. I wonder if ‘someone’ has decided that it is the answer to extract more revenue from the marketplace.
“‘dynamic’ or ‘variable’ pricing — a ticketing philosophy that has theaters and arenas boosting ticket prices based on hot-selling shows and popular game days. Prices also can decrease based on demand.“
“It’s going to give the buying public more power and more options,” said Sammy Wallace, vice president of event programming at Germain Arena in Estero. “You could pay more for a ticket, or you could pay less. It’s really up to you.”
Is it too cynical to suggest that you could pay more for a ticket or not go, it’s really up to you?
“Overpriced tickets can cut out budget-minded buyers, while underpriced tickets can lead to ticket scalping because some fans are willing to pay much more for the best-possible seats. Dynamic pricing helps correct that.“
I find the concern for the “budget minded buyers” a convenient social equity argument and I wonder how often dynamic pricing goes the other way? Didn’t that used to be called discounting of less desirable seats to acquit social accessibility responsibilities?
“Economics is driving this new ticketing trend. Dynamic pricing is a response to many factors, including higher production costs and artist fees, lackluster ticket and album sales, and the looming specter of ticket scalpers.” I think the real driving factors have been identified here and … sorry … the consumer and better or more equitable service is not identified as a driver.
Entry filed under: audience development, Dynamic Pricing, scalping. Tags: Dynamic Pricing, price, scalping, secondary market, variable pricing.
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