Will dynamic ticketing mean cheaper tickets?
Dynamic ticketing promises to cut the cost of tickets to sporting and entertainment events. But will it really lead to cheaper tickets?
The price of tickets to see a sporting event or a concert can be astronomical – and ticket retailers with over inflated 'admin' charges do nothing to help the matter.
But this could all be about to change with the introduction of ‘dynamic ticketing’, where the price of tickets is decided using a computer algorithm.
This process is already in popular use in the US, particularly in the sports world, and has been used in the travel industry in the UK for some time. As travellers we are used to sitting on a plane and knowing that every single passenger will have paid a variety of (often dramatically different) prices for their ticket. Each departure and seat is priced differently, based on a variety of factors such as day-to-day expected demand.
And this system could soon be integrated into the entertainment ticketing industry, specifically for concerts, theatre performances and sporting events, over here. The aim is to try to ensure that ticket sales are driven solely by demand.
The science behind the concept
An American psychologist, Jan Alan Eglen, came up with the concept.
He created a computer program that takes many different factors into account when deciding the correct pricing structure for an event. These factors include the popularity of a team or event, the seating arrangement, the economic situation in the area and even the weather (only die-hard fans want to go and watch certain matches in the howling rain!).
He argues that his system will ensure that the pricing of events will become more scientific.
The current situation
The UK market, particularly in relation to popular concert and theatre tickets, appears to be dominated by a few companies who seem to have a monopoly over both the primary and ‘secondary’ ticket markets.
This secondary market, where tickets are re-sold, basically means that the best seats in the house for an event like a pop concert rarely actually hit the open market. Many tickets go straight to VIP packages and fan clubs. And those that do make it on sale to the general public are often snapped up by organised brokers within seconds of going on sale, and end up on secondary agent websites anyway.
It is currently nigh on impossible to get a good ticket for a popular event without paying a hugely inflated price.
Will it work?
For theatres and less prestigious sporting events, where empty seats and declining numbers of fans are a problem, the system could work well. Ticket prices will lower accordingly until seats are filled.
But for hot gigs and sell-out events it is doubtful that dynamic ticketing could work. The computer algorithm simply could not respond to the demand quickly enough and tickets would just go to those who can pay the most.
The face value of the most expensive tickets to see the Rolling Stones at their O2 arena concerts in November is £375. This is a high enough price to pay, but those tickets are now on sale on secondary sites for up to £10,000!
Can I work the concept of dynamic ticketing to my advantage?
As is currently the situation with train or airline tickets, dynamic ticketing could mean that – in some cases – if you get in early you are more likely to bag a bargain.
Just as you know that if you turn up at the train station or airport and buy tickets on the day, you will be paying much more than someone who bought their ticket well in advance, the same principal will operate when buying tickets to see your favourite band. Higher demand than was expected could see prices rise in the days and weeks after a concert goes on sale.
Equally, if you're prepared to sit tight, then ticket prices for a less popular show could come down over time.
The bottom line is that dynamic ticketing may not be a magic solution to ridiculous ticket prices and greedy online ticket selling agencies. You will still pay through the nose to see Take That trotting about the stage, or Coldplay whining.
But if your tastes are slightly less mainstream you might be in with the chance of picking up a ticket for a more reasonable price, and less than other people have paid.
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