Dynamic pricing explained: Definition, examples and more
Dynamic pricing is the talk of the town following recent Oasis ticket prices – but what exactly is it?
Have you been left disappointed after trying and failing to get Oasis tickets? Trust us, you're not the only one.
Whether you missed out on the Oasis tickets ballot, got the trivia question wrong when entering or simply didn't make it through the queue, chances are you're looking back in anger right now.
Fans have faced another difficult situation when trying to get tickets. After getting in the queue and waiting for hours, many were shocked to see that the prices of tickets had risen from £135 to a whopping £350.
This is due to a practice known as dynamic pricing, which is when a product or service does not have a fixed price but instead varies in cost, depending on market factors.
If you want to learn more about what dynamic pricing is, we've put together the ultimate guide to answer your burning questions.
If you've had enough of dynamic pricing inflating the cost of your concert tickets, here's how to get cheap concert tickets, as well as how to avoid booking fees.
What is dynamic pricing?
The important thing to remember is that dynamic pricing doesn't just refer to the world of ticketing. It can be applied to any situation where a product or service has no fixed price and instead adjusts its price in real time according to a number of market forces.
These forces can include things like competitor pricing, as well as supply and demand.
This means that the price of the product or service will vary according to the market conditions.
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How does dynamic pricing work?
If you cast your mind back to GCSE Economics, we're sure that you can recall the concept of supply and demand.
Simply put, the higher the demand for something, the more it will cost.
This is the basic principal behind dynamic pricing. If there's a high demand for something like Oasis tickets, then the prices will be raised.
With dynamic pricing, the prices are adjusted in real-time.
However, dynamic pricing isn't just dependant on demand. Time-based pricing, surge pricing, personalised pricing and segmented pricing also exist.
Think about it: how many times have you decided to get an Uber because you don't want to walk in the rain, only to discover that prices have leapt up because everyone else has had the same idea as you? This phenomenon is known as surge pricing.
Different types of dynamic pricing are often used in the travel industry. How often have you went on a mid-week holiday instead of a weekend getaway because of cheaper prices? That's all thanks to time-based dynamic pricing.
Segmented pricing is often used in the entertainment industries, with students and over 65s often being offered cheap theatre tickets.
Dynamic pricing Ticketmaster
In the world of ticketing, one name reigns supreme: Ticketmaster.
Ticketmaster currently hold a monopoly over the ticketing sphere, meaning that when a new tour is announced by a well-known artist, chances are that you can find your tickets on their website.
The platform has been known to use dynamic pricing on a number of occasions, such as with Harry Styles and Bruce Springsteen tickets.
Speaking of concert tickets, here's how to get Imagine Dragons tickets and how to get Linkin Park tickets.
