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The Risks and Rewards of Dynamic Pricing | Ticketing Today

Although the concept of dynamic pricing for ticket sales isn’t new, it has recently gained momentum. This structure borrows pricing models from airlines, which typically price desirable seats and flights at a premium and reduce the price of unsold seats close to the departure date to sell out the flight. Prices shift and change rapidly based on demand.

In the sports world, the 2009 San Francisco Giants were the first to test this model, followed shortly by the Chicago Cubs and the White Sox. The Chicago Tribune reports that dynamic pricing helped the Giants sell an additional $500,000 worth of tickets in 2009. Forbes asserts that this pricing model confuses fans too much, claiming that they’d rather walk away from purchasing tickets than make a choice between myriad options.

While $500,000 in additional ticket sales may sound enticing, is this pricing model realistic and worth testing for your venue? What risks do you run when you change pricing models, and what other benefits might you stand to reap?

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The Risks and Rewards of Dynamic Pricing.

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