Dynamic pricing has become an increasingly common practice in the ticketing industry over the last several years. Many major ticket sellers like Ticketmaster now use algorithms to adjust prices for events based on demand. This means ticket prices can fluctuate significantly leading up to an event. While dynamic pricing can help maximize profits for ticket sellers, it also makes buying tickets more challenging and unpredictable for consumers. Fortunately, there are some tips and tricks you can use to try to get the best deal and avoid paying exorbitant dynamic pricing on Ticketmaster.
What is dynamic pricing?
Dynamic pricing refers to a pricing strategy where prices change over time based on market demand. With dynamic pricing, sellers can adjust prices up or down very quickly using real-time data and algorithms. In the ticketing industry, as an event gains popularity and tickets start selling out, prices will typically go up. The goal is to find the highest price the market will bear in order to maximize revenue. On the flip side, if there is little demand for an event, sellers may drop prices at the last minute to try to boost sales. Companies like Ticketmaster use past sales data, current sales momentum, and projected demand to constantly recalculate pricing.
Why does Ticketmaster use dynamic pricing?
There are a few key reasons Ticketmaster and other large ticket sellers have adopted dynamic pricing models:
- Maximize revenues – Dynamic pricing allows sellers to capture the full demand curve. High demand events can command top dollar pricing, while slower selling events can be boosted with flash sales.
- Market-driven pricing – Prices are set based on what the market is willing to pay at any given time vs. just setting static pricing.
- Discourage scalpers – Significant price bumps for high demand events helps discourage scalpers from buying up all the tickets.
- Fairer pricing – Fans willing to pay the most can get first access to the best tickets when prices are lower.
While dynamic pricing has its merits from a revenue standpoint, it also has received a lot of criticism from consumers for the way it can drastically increase prices and make costs unpredictable.
How does Ticketmaster’s dynamic pricing work?
Ticketmaster uses a dynamic pricing program it calls “Official Platinum.” This program allows Ticketmaster to adjust pricing on the fly based on demand and other factors. Tickets designated as Official Platinum have prices that can fluctuate over time, sometimes drastically. Here is a quick rundown of how it works:
- Algorithm-based – Ticketmaster uses algorithms to crunch supply and demand data to determine optimal pricing.
- Price range – Each ticket will have a min and max price range it can be sold for.
- Constant recalculation – Prices update as sales come in and demand projections change.
- Price alerts – Fans can request price alerts if prices drop to certain thresholds.
- Sales data – Past sales data informs pricing models and demand projections.
While Ticketmaster is upfront that certain tickets will have variable pricing, the proprietary algorithms they use to set and adjust prices are not at all transparent to consumers.
Why can dynamic pricing increase prices so much?
There are a few key reasons why dynamic pricing can lead to dramatic price spikes for hot events:
- Exponential demand – For extremely popular events demand tends to rise exponentially as it gains buzz leading up to the on-sale date.
- Limited supply – There are only so many seats in an arena, once they sell out prices can shoot up drastically based on scarcity.
- Speculative pricing – Algorithms try to project demand and may overshoot actual interest significantly.
- Price ceilings – The max prices assigned to Platinum tickets can be multiples above face value.
The result is sellers like Ticketmaster can capture the frenzied demand that drives up the resale market. While they may sell fewer tickets, the tickets they do sell can be priced significantly higher.
Negative impacts of dynamic pricing
While dynamic pricing has clear financial benefits for ticket sellers, many fans complain the model has some downsides:
- Unpredictable costs – Fans can’t budget when prices fluctuate minute-to-minute.
- Priced out – Huge price hikes driven by algorithms put hot events out of reach for many.
- Arbitrary prices – Perceived unfairness when similar seats have huge disparities.
- Less transparency – Unlike StubHub, Ticketmaster market-driven prices are opaque.
- Artificial scarcity – Critics argue sellers leave more seats as Platinum to drive profits.
These unintended consequences can spark fan backlash and public relations issues for companies like Ticketmaster. However, the revenue potential of dynamic pricing makes it unlikely to disappear any time soon.
How to get the best deal on Ticketmaster
To avoid paying inflated dynamically priced tickets, here are some of the best tips and tricks for finding deals on Ticketmaster:
Buy early
Your best bet is to purchase as soon as tickets go on sale when prices are likely to be at or near the minimum levels. Sign up for presale opportunities and be ready to buy when tickets are released.
Avoid Platinum tickets
Platinum tickets are where Ticketmaster applies dynamic pricing. Look for seats designated as “Standard” pricing which are typically face value. Platinum will almost always be significantly marked up.
Be flexible
If aiming for a specific section or seat number, you’ll pay a premium. Being flexible on dates, seat location, and number of tickets will unlock cheaper options.
Buy group tickets
For very popular events, season ticket holders and fan club members often get access to group ticket allotments. These are large blocks bought at face value specifically for groups.
Try presales
Take advantage of special presales for credit card holders, fan club members or promoters which often have face value tickets reserved before the general on-sale.
Shop resale marketplaces
StubHub, Vivid Seats and other resale sites can sometimes have tickets priced below dynamically adjusted Ticketmaster prices for the same event.
Wait for last minute deals
If an event has tickets left just before show time, prices often drop as Ticketmaster tries to unload remaining inventory.
| Strategy | When to Use | Risk |
|---|---|---|
| Buy early | Right when tickets go on sale | Paying more than you need to |
| Avoid Platinum Tickets | When purchasing tickets | Limited ticket availability |
| Be Flexible | When searching for tickets | Getting less ideal tickets |
| Buy Group Tickets | For high demand events if you have access | Requires club membership or contacts |
| Try Presales | Leading up to public on-sale | Limited ticket allotment |
| Shop Resale Marketplaces | Closer to event date | Paying above face value |
| Wait for Last Minute Deals | Day before or day of event | Tickets may sell out |
This table summarizes when to use each strategy to find Ticketmaster deals and the potential risks to keep in mind with each approach.
Use technology to get alerts
There are a few technology tools that can help you time your ticket purchase right when prices hit a threshold you want to pay:
- Ticketmaster price alerts – Track prices and get alerts when Ticketmaster tickets hit certain price points.
- Deal websites – Sites like Slickdeals can post when presales or special deals happen.
- Facebook groups – Join fan groups for real-time tips on presales and group tickets.
- Ticket bots – Bots automatically scan and alert you to ticket listing prices and availability meeting your criteria.
Leveraging these tools along with the buying strategies outlined above can help you avoid overpaying due to dynamic pricing on Ticketmaster.
Is dynamic pricing legal?
While fans are often frustrated by dynamic pricing, the practice of using market-based pricing and algorithms to adjust prices frequently is legal. Certain conditions must be met:
- No collusion – Sellers can’t coordinate to fix prices which would be anti-competitive.
- Avoid deception – Pricing policies and mechanisms must be fully transparent to consumers.
- No bait-and-switch – Dramatically increasing prices at last minute after baiting consumers could be an unfair trade practice.
- No discrimination – Differing prices must be based on current demand factors vs. targeting specific groups.
As long as Ticketmaster avoids these predatory practices, there are no regulations prohibiting them from setting prices based on whatever the market will pay at a point in time.
Will dynamic pricing expand?
The use of dynamic pricing driven by advanced algorithms is accelerating across multiple industries. Here are some areas it is likely to continue spreading to:
- Travel – Airlines and hotels already adjust prices frequently based on demand.
- Ride sharing – Uber and Lyft use dynamic pricing for surge pricing models.
- Sports – More leagues and teams are adopting variable ticket pricing.
- Concerts – Beyond Ticketmaster, other ticketing providers are piloting dynamic pricing.
- Retail – Ecommerce pricing algorithms allow constant price changes.
- SaaS – Usage-based SaaS pricing adjusts with custom usage data.
As data and analytics continue improving, expect personalized and dynamic pricing to penetrate deeper across the economy.
Conclusion
While Ticketmaster’s dynamic pricing model clearly benefits its bottom line, it can be extremely frustrating for fans. Prices that vary minute-to-minute based on opaque algorithms can make buying tickets a stressful experience. Fortunately, fans aren’t helpless against dynamic pricing. Using presales, buying early, avoiding Platinum tickets, and leveraging technology are some of the best ways to get tickets below market price. Though it requires some effort, fans can still find deals in a dynamic pricing world.
