Dynamic ticket pricing - yay or nay?

[Karl Eriksson]

As a consumer, do you like dynamic ticket pricing?

Here is how Wikipedia defines it:

“Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing is a pricing strategy in which businesses set flexible prices for products or service based on current market demand”

Sens have been doing it for years. Just saw that the Sabres are now using it this season. Seems many if not most teams are using it now.

Makes great economic sense for the owners, but I’m trying to tease out the consumer perspective.

Click to read more...

 

[Prairie Habs]

You missed the other synonym, gouging

 

[VoluntaryDom]

supply and demand bruh

 

[Makar Goes Fast]

wait so ottawa is paying people to go watch them?

 

[Devilsfan992]

I mean it's kind of expected.

 

[Not Sure]

For the aabres I was under the impression dynamic pricing was their system of having tiers of games. A Saturday afternoon game against Toronto is a platinum game and costs $100 for a 300 level ticket, while a Monday night game against Ottawa costs $30 for the same ticket. Maybe I missed active price changes due to demand, if that's the case it's a pretty crappy thing to do, and the team becomes no better than scalpers. Most tickets are bought second hand at the last minute anyways, most of the games are sold out well in advance through season ticket sales and mini packs, and only a comparatively small number of seats are reserved for walk up sale the day of the game, if any.

 

[Adele Dazeem]

I bought Kings tickets in advance and made a mistake; they're cheaper now than they were two months ago...

 

[Hischier and Hughes]

I clearly dont know much about business fundamentals

I thought ticket prices were already and have always been determined by market demand...

Unless Im misunderstanding

 

[bleedblue1223]

I clearly dont know much about business fundamentals

I thought ticket prices were already and have always been determined by market demand...

Unless Im misunderstanding

In a basic sense, but teams of all sports have been adopting this model lately. Basically there is more variance in price for the same seat now depending on day of week, performance of team, who the opponent is, and other factors. Before, ticket prices were more standard.

Meant to maximize attendance in the lower tier games by making a little cheaper and maximizing revenue are top tier games by making more expensive.

 

[Bob Barker]

I bought Kings tickets in advance and made a mistake; they're cheaper now than they were two months ago...

This is the most annoying to me. If you buy tickets early, the price shouldn't go down. I get the business aspect of it, but it sucks.

 

[triggrman]

This is the most annoying to me. If you buy tickets early, the price shouldn't go down. I get the business aspect of it, but it sucks.

caveat emptor

 

[SnuggaRUDE]

caveat emptor

That's not a solid longitudinal strategy.

 

[StoneHands]

You missed the other synonym, gouging

I don't think you know what price gouging is. We're not talking about doubling or tripling gas or water prices after a natural disaster, we're talking about charging a few more dollars to see teams that people actually want to see. I'm a Flyers fan and even I can see why it would be more expensive to see a Flyers v Pens game compared to a Flyers v Coyotes game. I'm not sure if you're a golfer but have you ever gone at noon on a Saturday and then again at 4pm on a Tuesday? Were the prices the same? Every try to book a flight to a big city a few days before departure? I bet you paid a different price than the guy sitting next to you that reserved it months in advance.

 

[triggrman]

That's not a solid longitudinal strategy.

It happens in every industry.

 

[SnuggaRUDE]

It happens in every industry.

Bullshit. There are plenty of industries based upon long term mutually beneficial transactions.

 

[triggrman]

Bull****. There are plenty of industries based upon long term mutually beneficial transactions.

You've never purchased something only to have it go "on sale". Same thing.

 

[SnuggaRUDE]

You've never purchased something only to have it go "on sale". Same thing.

You know most retailers price match for this exact reason? Retail would be exhibit A for caveat emptor not being the operative strategy. You'd be hard pressed to find a US mass retailer with an all sales are final strategy.

 

[bleedblue1223]

You know most retailers price match for this exact reason? Retail would be exhibit A for caveat emptor not being the operative strategy. You'd be hard pressed to find a US mass retailer with an all sales are final strategy.

There is still a time limit for the price match. That is also for industries where the product is exactly the same. Sports is more of a service type of entertainment, same with a golf course, air travel, other entertainment. The product of a hockey game is different depending on the opponent, day of the week, and other conditions. It's comparing apples and oranges because they are completely different industries.

 

[SnuggaRUDE]

There is still a time limit for the price match. That is also for industries where the product is exactly the same. Sports is more of a service type of entertainment, same with a golf course, air travel, other entertainment. The product of a hockey game is different depending on the opponent, day of the week, and other conditions. It's comparing apples and oranges because they are completely different industries.

No doubt, but quoted poster assured me that cavaet emptor was the rule of the day in all industries. It's demonstratively not.

 

[bleedblue1223]

No doubt, but quoted poster assured me that cavaet emptor was the rule of the day in all industries. It's demonstratively not.

Ah, fair, didn't see that post in the string.

 

[StoneHands]

No doubt, but quoted poster assured me that cavaet emptor was the rule of the day in all industries. It's demonstratively not.

Actually he just said "it happens in every industry", not that it's the only way companies do business. He's not wrong. If an NHL team drops it's prices as a game approaches because they aren't sold out, it's because they are trying to get people through the door so they can make additional revenue from parking, concessions, etc. To expect that they would reimburse everyone else is silly. If that was what they had to do they simply wouldn't decrease the ticket prices for remaining seats rather than reimburse the thousands of people who already have tickets.

 

[SnuggaRUDE]

Actually he just said "it happens in every industry", not that it's the only way companies do business. He's not wrong. If an NHL team drops it's prices as a game approaches because they aren't sold out, it's because they are trying to get people through the door so they can make additional revenue from parking, concessions, etc. To expect that they would reimburse everyone else is silly. If that was what they had to do they simply wouldn't decrease the ticket prices for remaining seats rather than reimburse the thousands of people who already have tickets.

I'm not against price discrimination. It's generally not good for the consumer, but when transparent it's ethical.

 

[tony d]

Yeah, I like it. Could mean a saving on the ticket price.

 

[triggrman]

Yeah, I like it. Could mean a saving on the ticket price.

You know, they're not lowering the price on the any of the games, they just use it as justification to raise the prices on the "premium" games.

 

[bleedblue1223]

You know, they're not lowering the price on the any of the games, they just use it as justification to raise the prices on the "premium" games.

Yes and no. It really depends on the team. The Cardinals in baseball do a very good job of it. You can get all-inclusive seats on the non-premier teams/dates for $100 or less, and it's legitimately good food, not just the concession stand or simple stuff. You tend to see it work better in sports like baseball where there isn't a high likelihood of a sellout for the lower tier games. For smaller stadium sports or sports with less games, it's more likely that they can fill the arena without lowering prices much.