mono-stereo Pricing is affected by fluctuations in demand. That’s fine and understandable with air travel etc. However, in this case surely the promoter already knew demand would far outstrip supply? Hence there is no fluctuation, so no reason to change the ticket price. QED
Smallman1 Can we get some clarity on dynamic pricing please?!
Strictly speaking Ticketmaster does seem to operate a demand-based dynamic pricing model for the sale of some of its tickets when chosen eg for the Oasis gig.
While it’s true that Ticketmaster / the event promoters would have very likely anticipated that demand would far outstrip supply, the surge in prices after the tickets went on sale would simply mean that if they were aiming for the most optimal price point (where they could sell all the tickets at the highest possible price), then the original price was clearly just set too cheap.
Maybe the original price was “too cheap” because ticketmaster / the promoters under-estimated demand (unlikely), or perhaps they thought a lower headline figure would maximise demand and lead to sales from customers who once invested were willing to pay the higher, “dynamic” price point, but who may have been put off if the higher price point was advertised initially before starting the queuing/buying process.
They also may have simply thought that intentionally setting a higher original price would generate even more negative headlines than leaving the fees to be determined by their dynamic pricing model (and which would result in near enough the same revenue generation anyway).
Lastly, even if Ticketmaster / the event promoters had tried to even more accurately price their tickets from the get-go to match the more accurate high level of demand, it’s still unlikely that they would have got this price 100% perfect (such predictions of demand will of course be unlikely to ever be entirely accurate), and therefore even with a higher price initially, a dynamic pricing model would still have likely made some (more minor) adjustments to the end price anyway once it had started to receive more data after the ticket sales began.
