Ticketmaster’s new dynamic pricing system has been criticised by music fans. Last year, people found it incredibly difficult to get tickets to Oasis’ reunion tour, with people calling out the company to try and make a change. The new system works by changing the prices of tickets based on total demand, in the same way as Uber and various hotel chains.
Ticketmaster is Now Staggering the Release of Tickets
Ticketmaster is now releasing a number of standing tickets for gigs, and when they sell out, they are listing more tickets at a higher price. In the instance of Oasis, tickets originally went on sale at £148, but then rose to £355 in the second wave. Users were also being mislabelled as bots and had to wait in an online queue for hours. In addition, fans were left feeling disappointed after long queues and dynamic pricing for Black Sabbath’s latest show. Ticketmaster, who are owned by Live Nation, processes 500 million tickets a year, and although they do want to find ways to capitalise on demand, there are other ways that they could approach the situation to improve the user experience for fans.
What’s the Workaround for Dynamic Pricing?
As dynamic pricing frustrates music fans across the globe, it makes sense for Ticketmaster to change its approach. Running specific promotions, rather than skyrocketing prices, makes sense here. Offering time-sensitive deals to control demand is a viable business strategy. Many sectors have already adopted this approach. Amazon Prime, for example, offers Prime Day deals on specific items, allowing people to capitalise on deals and promotions that run at certain times. Transparency is paramount as well, as people can always see how many products have sold, and what percentage remains at the lower price point.
It’s also possible to take inspiration from iGaming here. When you look online and see a casino bonus or promotion, there is always a clear parameter of when the promotion starts and when it’s due to end. You also have daily offers that help to spike interest on certain days. If Ticketmaster adopted this approach, it would be clear to fans when promotions run, rather than yo-yoing prices every few hours.
Another issue that people are facing is the slashing of ticket prices. Some people are paying hundreds to see bands, but a few hours before the event is due to start, Ticketmaster slashes prices to fill out the venue. Rather than adopting this approach, it makes more sense to rotate seat offers throughout the year. Having sales on certain blocks or rows of seats makes sense, as it keeps pricing transparent, but at the same time helps to draw attention to underperforming areas. This would work in the same way as retail, where older stock is put on flash sales to shift it, creating a more balanced experience.
This helps to fill out the venue, and stops situations where people end up paying £200 for a seat, only to be stood right next to someone who only paid £20 for a last-minute ticket. By hosting sales, and by offering transparent pricing from the get-go, more ticket sales would be made throughout the year, fans would be able to make calculated decisions with their purchases, and it would also stop last-minute tickets flooding the market at rock-bottom prices, something which frustrates fans who bought their tickets early on.
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