In today's article, we will explain what dynamic pricing is all about and what to be careful about if you want to implement this ticketing strategy.
What Is Dynamic Pricing?
Dynamic pricing is a flexible ticketing strategy where prices change based on demand, availability, and timing. Instead of a fixed price, ticket costs can increase as demand rises or the event date approaches.
This strategy is commonly used in industries like airline tickets, hotels, and ride-sharing, and event organizers are now using it to maximize revenue and encourage early ticket sales.
How Does Dynamic Pricing Work in Events?
Event organizers can implement dynamic pricing in several ways:
Demand-Based Pricing: Ticket prices increase as more tickets are sold. For example, an event may start with early-bird tickets at €20, rise to €30 once 50% of tickets are sold, and reach €50 as the event nears.
Time-Based Pricing: Prices automatically increase as the event date approaches, regardless of how many tickets have been sold.
Tiered Ticketing: Offering multiple price levels, such as General Admission, VIP, and Ultra VIP, with limited availability for each tier. Once a tier sells out, the next price level becomes the only option.
Major festivals and concerts also use surge pricing for premium experiences like VIP packages, backstage access, or last-minute ticket releases.
Why Should Event Organizers Use Dynamic Pricing?
The biggest benefit of dynamic pricing is that it maximizes revenue while rewarding early buyers. When done right, it creates urgency, pushing attendees to buy tickets sooner to get better prices. Additionally, it helps balance supply and demand, ensuring that high-demand events generate the best possible profits.
However, transparency is key—attendees should be aware that prices will change over time to avoid frustration. By clearly communicating ticket price changes in marketing campaigns and on the ticketing platform, organizers can build trust while optimizing sales.
The Backlash: When Dynamic Pricing Goes Wrong
While dynamic pricing can be an effective revenue strategy, it can also lead to frustration and backlash if not handled transparently. A great example is the Oasis concert ticket controversy in 2024, where fans saw ticket prices skyrocket due to high demand. Prices surged from an initial £80 to over £400 within minutes, leaving many feeling exploited rather than incentivized to buy early. This led to significant negative press, fan outrage, and accusations of greed, forcing the organizers to publicly address the issue.
The lesson? Transparency is crucial. If ticket buyers don’t understand how pricing changes work, they may feel deceived. Event organizers should clearly communicate pricing tiers, set price caps, and avoid excessive price hikes to maintain customer trust while still benefiting from dynamic pricing.
Hopefully, this article helped you understand why dynamic pricing is gaining popularity and how to use it to your advantage to maximize your ticket sales.
Check out more of our blog posts to learn about the world of event management or see how BOOM Events helps promoters sell tickets fast and easily.
See you next time, fellow event managers!