The Dynamic Box Office

Unlike regular discounting or promotional pricing, the dynamic ticket model would enable organizations to price each production—and even each performance–strategically and, perhaps, more realistically. Instead of offering incentive discounts, both the organization and the audience would be able to gauge expectations for a show based on the ticket prices.

Declining ticket sales and decreased subscription renewals lead marketers to worry and wonder about the most effective way to promote ticket sales. A common “solution” is discounting, which leads to a host of other problems. Ron wrote this piece for Group of Minds outlining what the major drawbacks to discounting. Rather than reiterate what he has already presented so well, I will simply say that I agree with his concerns about this eagerness to discount in order to get butts in seats. Considering these issues may make dynamic pricing a more attractive option for some.

Dynamic pricing is a form of price discrimination, commonly used by airlines and hotels, in which a firm changes its prices in response to shifts in demand. In recent years, it has been promoted in the nonprofit sector as a method to help arts groups fill seats, maximize revenues, and (drum roll, please) make programs more accessible. Evidently, it is already being used by many arts groups across the US. While I hate to be the one to rain on the dynamic pricing parade, I have concerns about this trend.