Dynamic Ticket Pricing

For a while, the hot topic in performing arts industry has been dynamic ticket

pricing.  Dynamic pricing is a great way to maximize revenue by adjusting ticket prices based on demand.  But before tossing out your current pricing strategy, there are several things to consider.

Historical Sales Data

First thing your organization should to if you are considering implementing a dynamic pricing strategy is look at your historical sales data.  How far in advance are the majority of your patrons buying tickets?  Do you see buying trends by season or by genre? Do you currently offer early-buying incentives?

Technology

Does your current ticketing system easily support full-price ticket changes?  Are these changes automated or manual?  Are there limitations to full-price ticket adjustments?

Subscriptions & Memberships

How will any dynamic pricing you enact affect your members and/or subscribers?  Do you guarantee your members/subscribers the lowest price?  May dynamic pricing discourage subscriptions or memberships?

Messaging   

It is important that promote your pricing that is accurate and not misleading.  “Tickets starting at XXX” as opposed to listing exact ticket levels that may or may not be available on different days is one way to advertise prices.  It will also be important to coach box office and telephone sales personnel on how to talk about dynamic pricing.

Genres & Other Factors

Historical research may indicate that certain types of shows sell differently than others. There are many variables that may come into play: Casting, Genre, Seasons, etc. Weather may also be a factor that should be taken into consideration when increasing a ticket price (or not).