What is dynamic ticket pricing and exactly what does it mean?
The way concert and festivalgoers buy tickets to events has changed drastically over the years. Gone are the days of camping out overnight at the box office to get the best seats or missing time away from work waiting on the phone for event information and pricing.
At Evey Events, we stand ready to provide you with event coordination software and guidance regarding the major ticket pricing options.
Dynamic Ticket Pricing Defined
With dynamic ticket pricing, the prices for events vary as consumer demand ebbs and flows. For example, ticket prices are usually at their highest just before they go on sale or the day they become available. Over time, as consumer demand falls, so do ticket prices.
The dynamic sales model is a supply and demand system that many artists now use, but what is dynamic ticket pricing to a consumer and how can it affect your ROI as an events coordinator?
As a consumer, dynamic ticket pricing determines the price you pay for the event depending on when you make your purchase.
As an events coordinator, using a dynamic pricing model can change your profit margin depending on the number of tickets sold at different prices.
According to Statista, ticket sales for events worldwide are projected to reach $762.41 million by the year 2027. Sales models for most events nowadays either use a dynamic or variable system for selling tickets, and the dynamic model is popular today with some of the world’s largest event ticket outlets.
Dynamic Versus Variable Ticket Sales Models
The model for ticket pricing usually depends on the event. Many businesses in the hospitality sector, such as hotels, use dynamic pricing to sell rooms. On the other hand, Rockdaisy reports that most sports teams use variable pricing for their games and events, meaning that event prices are set once they go on sale and do not change due to supply and demand.
In many cases, factors for sports events do not support the dynamic ticket sales model. These include the possibility of bad weather that may cause a rain delay, injured players and the location of the sports event. Variable ticket sales offer less flexibility than dynamic sales, which may affect ticket buyers’ decision whether to attend the event.
Pros and Cons of Dynamic Ticket Pricing
Considering a few advantages and problems of dynamic pricing as you prepare your event can help you make the most informed choice possible before the tickets go on sale. Dynamic pricing for your event allows you to make the biggest profit possible just before or on the day of initial ticket availability. The more buyers you line up, the better the chance of a profit spike.
On the other hand, the variables that drive this sales model mean that some pay more for an event than others. This could cause a sense of negativity in some consumers when you plan future events. Practicing transparency with prices can offset this problem.
Reach Out to Evey for Ticket Pricing Products
The question of what is dynamic ticket pricing and other planning issues may seem overwhelming for you as a professional coordinating ticket sales for a large event. Contact us today for support software and other products that meet your individual event coordination needs.
