Ticket prices on Ticketmaster, the largest primary ticket outlet in the US, are known to fluctuate frequently. There are several factors that contribute to the dynamic pricing on Ticketmaster.
Dynamic Pricing Model
Ticketmaster utilizes a dynamic pricing model that adjusts ticket prices according to supply and demand. Just like airline tickets and hotel rooms, Ticketmaster ticket prices change over time based on market conditions. When tickets initially go on sale, prices are generally set lower. As an event draws near and/or inventory decreases, prices will naturally increase in most cases due to increased demand.
Some of the key factors that influence pricing changes on Ticketmaster include:
- The initial price set by the artist/team/promoter
- The current supply of tickets available
- The projected or known demand for tickets
- The day of the week or time of day
- The section/seat location within the venue
- Any special promotions or discounts offered
As these factors evolve over the sales cycle, Ticketmaster’s algorithm will adjust pricing accordingly. The goal is to maximize revenues for their clients while ensuring fair access to tickets.
Surge Pricing
One pricing strategy Ticketmaster employs is called surge pricing. Similar to Uber’s model, surge pricing refers to raising prices temporarily to respond to increased demand. Dynamic prices may surge 2-3x their initial price right before a concert if it is undersold. This helps capture more revenue from fans willing to pay more for high demand events.
Some critics argue surge pricing takes advantage of loyal fans by making popular events unaffordable. But Ticketmaster claims it helps discourage scalpers and ensures more tickets actually get into the hands of fans at originally set prices.
Platinum Tickets
In addition to dynamic pricing, Ticketmaster also offers a separate tier of high-priced tickets called Platinum Tickets. These are premium tickets sold at market value prices rather than face value.
Platinum tickets can cost anywhere from 1.5-10x the standard ticket price. They are placed throughout venues in small quantities to offer fans floor seats, VIP sections, or prime view seats. Artists or promoters determine the specific Platinum pricing strategy for each event.
According to Ticketmaster, Platinum Tickets help capture the true market value of high demand tickets to better compensate artists and promoters. However, critics argue it squeezes more money out of fans for unjustly overpriced tickets.
Service Fees
On top of the ticket price itself, Ticketmaster tacks on per ticket fees that further increase the total cost. These fees include:
- Service Fee – Ticketmaster’s charge for using its platform
- Order Processing Fee – For processing the ticket order
- Facility Charge – The venue’s fee for hosting the event
- Shipping Fee – For mail delivery of tickets
- Taxes – Local jurisdiction taxes added to the ticket cost
These extra fees can add over 25% to the base ticket price. Ticketmaster claims the fees cover the costs of running their platform and services. But many customers feel these unspecified fees are unfair price gouging just out to make a profit.
How Scalpers Manipulate Prices
In addition to Ticketmaster’s pricing strategies, ticket resale by scalpers also influences prices. Ticket scalpers utilize bots and sophisticated technology to buy up large quantities of tickets as soon as sales open. By creating an artificial shortage, scalpers can then markup tickets 2-5x face value or higher on secondary exchanges.
Common scalping practices used to manipulate Ticketmaster prices include:
- Bots – Software to purchase tickets faster than humans
- Ticket Brokers – Large operations for mass ticket resales
- Speculating – Buying desirable tickets now with plans to resell later
- Fraud – Using stolen identities or accounts to circumvent buying limits
The influx of reseller tickets creates the perception of limited supply. This allows scalpers to charge inflated prices fed by panic and desperation from fans. Unfortunately, Ticketmaster has not found an effective solution to eliminate scalpers from distorting prices.
How Some Fans Save Money
Despite Ticketmaster’s pricing practices, there are some tips fans can follow to get the best deal:
- Buy early – Prices tend to be lowest when tickets initially go on sale
- Aim for presales – Special presales offer access to tickets before the general public
- Join fan clubs – Artist fan clubs often get a presale code or offer ticket discounts
- Choose wisely – The best seats are not always the most expensive, so shop around
- Buy group tickets – Pricing for groups of 6+ can be lower per person
- Wait – Prices sometimes drop at the last minute if an event does not sell out
While prices will continue to fluctuate, fans have some options to avoid overpaying and still see their favorite artists live.
Conclusion
In summary, Ticketmaster utilizes variable and surge pricing, platinum tickets, and service fees to dynamically adjust ticket prices according to supply, demand, and what the market is willing to pay. Scalpers further manipulate supplies and prices in search of profit. While fans may feel taken advantage of by the system, there are still some ways savvy shoppers can find deals on Ticketmaster. But the days of fixed, fair, and transparent ticket pricing seem to be over.