Dynamic pricing, also known as in-demand pricing, is based on supply and demand factors and often leads to much higher prices. We’ve seen major event companies use dynamic pricing for events like the Australian Open tennis and the F1 Grand Prix, and we’ve heard from the ticket companies that they plan to expand using dynamic pricing, claiming it will help stop scalping.
What do you think, is this a fair way to sell tickets or corporate greed?
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Definitely greed! Choice is quite right in the claim that there will be a huge disparity between true fans and those who can afford to “be seen” to go to events should this in-demand pricing occur. It is already expensive to attend a performance - too much for many. One has to think twice about purchasing tickets, even if it’s a performance one really wants to attend.
Unfortunately Australia suffers the tyranny of distance, and always will, particularly as freight costs spiral.
It depends, I see it could be either way.
It could be fair if when allocating tickets, pricing is based at this time. For example, the first third of tickets sold are $100, second third $150 and last third $200. This often happens at the moment. If this is seen to be unfair, so would discounting of tickets close to the time of the event (which is the inverse scenario which also exists and occurs).
If ticket prices automatically get inflated based on demand so that, in effect, the purchase becomes an auction to see the maximum price each consumer is willing to pay, then this could be unfair if the tickets have been marketed with an indicative price and a consumer can’t buy at this price but must pay more. Again there is the inverse scenario where tickets could be heavily discounted close to an event to ‘get bums on seats’. This later scenario could be seen as fair.
Something which is unfair in the industry of our business (accommodation) is inflating prices deliberately when there is high demand. This can be peak holiday periods or a major event. This was recently seen in capitals for Taylor Swift concerts where accommodation prices were 2 or more times their standard rates at the time of the concerts. This was definitely greed.
The other factor is at the end of the day, live events are something a consumer can chose to do (they aren’t compelled to do) and if a ticket price is too high, then don’t go to the event.
This ‘flexible’ pricing for tickets seems to me to be an attempt to throw all the risk on to the customers when with fixed prices it was on the promoter. Nice work if you can get it.
Flippant - tongue in cheek - BUT - essentially “official” scalping…
