What is dynamic pricing?
Péter Kubovics avatar
Written by Péter Kubovics
Updated over a week ago

What is dynamic pricing?

Dynamic pricing is a sophisticated pricing strategy in which the price is reviewed and fine-tuned several times a day depending on the relationship between supply and demand. Accordingly, dynamically formed prices can change frequently and reflect much better the current market value of a given product or service. Dynamic pricing is now used successfully in many areas around the world - not only by airlines but also by several major foreign movie chains, the German Herta BSC football club, the Wizards playing in the NBA, Broadway in New York, the Metropolitan Opera, Airbnb and has become an everyday practice for both Uber and retail.

Why is dynamic pricing good for me, a ticket buyer?

Dynamic pricing results in prices that are in line with current market values, so our customers have to pay exactly what the selected tickets are worth at that moment. Additional benefits may differ depending on the attendance and demand of the performance:

  • Our customers can exchange tickets for less popular performances cheaper (also) than before. In addition to the amount saved, the audience experience can also increase as an additional benefit: price-reduced performances attract a larger audience, and actors, musicians, and other performers also prefer to play in front of more spectators.

  • Some or all of the tickets for high-traffic pieces that have become full in moments, in addition to the previous pricing, may become more expensive. As a result of possible price increases, access to these pieces will no longer depend on luck or proper relationships but on how much that interested can or are willing to pay for tickets. It is important, however, that after the initial high level of interest subsidies, ticket prices will begin to fall so that access to later performances will be available to everyone.

  • Many people are unable or unwilling to buy a ticket because they are not sure they will get it on the day of the performance 2-3 months in advance. Dynamic pricing, however, can maintain a ticket quota that is more expensive than the average ticket price but is expected to be available to viewers until the last few days.

How will the price of tickets change with the introduction of dynamic pricing?

The price of the tickets will vary according to the current supply and demand ratio, ie, on a market basis. Initial supply is usually fixed and given, but demand can vary depending on product characteristics (e.g., quality of a performance, time, seating position in the room) and external factors (e.g., weather, alternative programming, actor exchange). The combination of factors influencing demand plays a role in the price formed during dynamic pricing.

What can I do if ticket prices go down, but I’ve already bought one?

Tickets that have already been purchased cannot be redeemed or exchanged in accordance with standard practice everywhere.

Will ticket prices be higher with the introduction of dynamic pricing?

As a result of dynamic pricing, ticket prices change over time, so tickets for the same performance can be exchanged at multiple prices. The average price of dynamically priced tickets that is popular may be cheaper and more expensive than previously statically priced tickets, depending on the level of supply (more precisely, the current relationship between supply and demand).

Which performances will be dynamically priced?

It is up to the organizer, but we will always draw your attention to this during the purchase process.

How will tickets that can be purchased offline be priced?

Purely dynamic pricing is designed to change the price of tickets both online and offline. Still, during the introduction, it depends on the needs and technological capabilities of the particular partner. More information is available at the organizer of the specific film / piece / concert / performance, or on the ticket purchase interface.

In what range can ticket prices move?

The range is determined by the event organizer.

Tickets for the best performances have become very expensive. What can I do?

At less popular times, tickets are cheaper for even the busiest productions than at peak times. In addition, ticket prices will start to fall after the initial high level of interest subsides, so access to later performances will be available to everyone, even during peak hours. Beyond all this, it is important that, except for the most popular performances, average ticket prices will typically be lower than previous static prices.

When is the cheapest ticket for a given performance?

It depends on how the supply-demand relationship develops. You can always find information about the current ticket prices on the website of the organizer/ticket seller.

I put X-priced tickets in my cart but didn’t finish the payment on time. I only found the same product at a Y price when I started shopping again. What can I do?

It is common practice for online shopping that the cart has a predefined expiration date. In our case, it is 15 minutes. This is necessary so that the product is not stuck in the shopping cart of customers who may need to remember to pay. Still, they are released after a certain period and can even be purchased by other interested parties. The price of tickets returned to the market after the basket expiration may differ from the ticket price in force when it was placed in the last basket, depending on the current supply-demand relationship. Tickets can only be purchased at the current price.

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