OnDemand WTP Pricing Research

Are Face Value Tickets a Thing of the Past? | Una Tickets

Dynamic pricing is a pricing strategy in which businesses set highly flexible prices for products and services based on current market demands. The travel industry is a prime example of dynamic pricing where getting the lowest airfare often comes down to a combination of buying tickets on the correct day of the week, at the right time of day and the correct number of days before your scheduled departure date. (Interesting fact; the best time to buy airfares is six weeks in advance).

Quite a few sports organisations in the States have practiced dynamic pricing for premium seats for years. The big problem is that, in recent years, ticket agencies have been increasing their use of dynamic pricing for live events with the most well known being Ticketmaster’s Platinum service. The tickets are priced at ‘market-value’ and increase/decease dependent on demand.

One of the most recent examples of dynamic pricing is U2’s iNNOCENCE + eXPERIENCE 2015 Tour which went on sale 8th December 2014. Platinum tickets for Blocks 109 and 110 in London’s O2 arena were priced between £300 – £450 whilst the same tickets in similar blocks were priced between £90 – £165 (plus booking fees). With VIP packages priced at £440 per person this made platinum tickets amongst the most expensive tickets in the arena with no extra benefits.

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Are Face Value Tickets a Thing of the Past?

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