Why do ticketing platforms do dynamic pricing?
One of the most controversial topics in ticketing is dynamic pricing also called demand-based pricing, in-demand or platinum tickets - where ticket prices vary based on real-time demand.
Platforms such as Ticketmaster have been frequently cited in media reports and fan discussions as examples of this practice.
At uTickets, we believe in fixed pricing: no extra fees and no price hikes.
In this article we explore why many platforms use dynamic pricing, what customers think about it, and why we choose not to do it at uTickets.
What is Dynamic Pricing?
It is a pricing model where ticket pricing adjusts based on demand, time to an event, or popularity. This is similar to pricing systems used in airlines, hotels, and ride sharing. Ticketing platforms who use this practice claim they use it to reflect market value, reduce scalping, and allow artists/promoters to capture more revenue when demand is especially high. But none of these platforms talk about how dynamic pricing affects their customers.
Why Platforms Use Dynamic Pricing
To make more money
When demand is high, dynamic pricing allows platforms to raise ticket prices and earn more, especially for large concerts where there is interest in volume. It is essentially a bidding system.
To "prevent scalping"
Scalping is where some malicious or opportunistic persons buy tens or hundreds of concert tickets at a time so that they can resell them for more value later when the tickets are scarce and pricing has gone up. If the tickets are jumping up in price due to the dynamic pricing pushing the price higher then this is thought to deter scalpers from buying tickets.
But if you are like me you can see how scalping might trigger the dynamic pricing to increase the ticket prices because it simulates demand - this increase causes customers to pay more money which makes the platform and the organiser earn more money and allows the scalpers to sell their tickets for more money later on - not fair.
It has even been questioned whether large event organisers participate in scalping of their own to manufacture hype for their concerts or events. They would win two fold, one on making the event look popular or in demand and two on reselling the tickets they themselves scalped at a higher price so they can make more money.
Please take some time to read these two articles on recent concert dynamic pricing and the sentiment around it BBC and The Independent.
What Customers Think and The Backlash
Fan reactions online and in the media show strong criticism.
Many fans use words like "shady" to describe dynamic pricing, especially when tickets double or triple in price as seen on this Reddit post and this BBC article
Some comment that dynamic pricing should be illegal as they feel it is exploitive - see this Reddit post
Media outlets reported major backlash in tours like Oasis (UK) and Green Day (Australia) as seen in this The Independent article
Fans also describe distrust and disgruntlement around this topic, so much so they have made a Reddit subreddit just to voice their frustrations - this subreddit gets visited hundreds of times a week and can be seen on Reddit here
Why uTickets Does Not Do Dynamic Pricing
At uTickets we are ordinary people who believe community is everything, we come from solid backgrounds and do what is right for our community.
We don't believe in nor can we justify the variable price hikes other platforms add to concert tickets. We don't believe in driving the price up to create demand or fear monger customers into paying more.
We think it is misleading that some platforms feel it is okay to practice dynamic pricing with all the negatives that come with it.
At the end of the day, it is the customer who takes the punch, feels frustrated, and is left helpless.
We offer fixed pricing, what the organiser sets as the ticket price is what will be paid
We do not allow organisers to pass their fees onto the customer
When it comes to scalping prevention we limit the amount of ticket purchases per email, credit card and IP address so we can minimize abuse - we can only improve on this over time
Conclusion
Dynamic pricing can be a powerful tool - but unfortunately it is abused and it is flawed when it comes to the ticketing landscape.
We believe in fairness, and we will always safeguard our customers—both patrons of events and organisers themselves. We will do so in a way where everyone benefits, so that we can stand together and experience these beautiful events and moments together.
Say no to dynamic pricing and for the best ticketing experience for both customers and organisers please recommend your next concert or event to use uTickets.