Don’t Look Back In Anger!

How Ticket Sellers Exploit Consumer Demand: A First-Person Perspective on Dynamic Pricing Models

The reformation of Oasis was the news 90’s kids had been waiting years to hear! There’s nothing quite like the rush of snagging tickets to see your favorite band or sports team to perform. But what if I told you that the ticket you’re buying might not just be priced based on its intrinsic value or the venue’s capacity? Instead, it might be part of a broader strategy that ticket sellers use to exploit consumer demand through a practice known as “dynamic pricing” or “in-demand pricing.”

Let me take you through my experience with this, using one of the most iconic bands, Oasis, as an example.

The Oasis Reunion Rumor and the Ticketmaster Frenzy

The moment the tickets go on sale, I’m on Ticketmaster, ready to buy. But instead of finding a straightforward price, I’m met with at first with an endless queue but soon enough I’m then faced with what seems like an auction—ticket prices that fluctuate wildly as I watch.

This isn’t a mistake. It’s a calculated move by Ticketmaster to capitalize on the intense demand. This practice is known as “dynamic pricing” or “in-demand pricing,” where ticket prices are adjusted in real-time based on how much consumers are willing to pay. In simpler terms, it’s supply and demand—but with a twist.

How Dynamic Pricing Works

Dynamic pricing is not unique to the ticket industry; airlines and hotels have been using it for years. But when it comes to live events, the stakes feel much higher. Ticketmaster, for instance, monitors the demand for a particular show and adjusts prices accordingly. If Oasis tickets are selling like hotcakes, the prices skyrocket. If demand is lower than expected, prices might drop, though that’s a rarity for popular events.

But here’s where it gets tricky. Unlike airline tickets, where you might have the flexibility to choose a different flight or travel date, the concert you want to see is a one-time event. Missing out is not an option for die-hard fans like myself, which means we’re often willing to pay a premium. Ticket sellers know this and use it to their advantage.

The Impact on Fans

For fans, this dynamic pricing model can feel like exploitation. The price you see at the start isn’t necessarily the price you’ll pay, and the fluctuations can be drastic. One minute a ticket might be £150, and the next, it’s £500. It’s frustrating, to say the least. What was once a straightforward process of buying a concert ticket has turned into a nerve-wracking game of cat and mouse, where fans are left wondering if they should buy now or wait, hoping for a lower price.

The irony is that these pricing models often turn the most loyal fans into the most exploited customers. We’re the ones who’ll pay whatever it takes to see our favorite band, and the ticket sellers know this. They count on it.

The Justification from Ticket Sellers

Ticket sellers like Ticketmaster argue that dynamic pricing helps to capture the true market value of a ticket. They say it prevents scalpers from buying up all the tickets and reselling them at inflated prices. By adjusting prices based on demand, the argument goes, more money stays in the pockets of artists and promoters, rather than going to middlemen.

While there’s some truth to this, it doesn’t fully account for the fan experience. For many of us, the process feels more like gouging than fair market practice. The promise of fair pricing often seems overshadowed by the reality of sky-high prices and a buying process that feels increasingly out of our control.

Ticketmaster’s Troubled History: A Pattern of Exploitation

Unfortunately, this isn’t the first time Ticketmaster has found itself in hot water over its pricing practices. The company has a long history of negative press and consumer dissatisfaction, often centering around the very issues I’ve experienced.

One of the most infamous cases was back in the 1990s, when Pearl Jam publicly took a stand against Ticketmaster’s monopolistic practices. The band claimed that Ticketmaster’s excessive service fees were unfair to fans and tried to organize a tour without the company’s involvement. But the attempt was largely unsuccessful, as Pearl Jam quickly discovered that Ticketmaster’s near-total control over the venue market made it nearly impossible to book major concert halls without going through them. This led to widespread criticism of Ticketmaster as a gatekeeper, effectively holding both artists and fans hostage to their pricing schemes.

More recently, Ticketmaster has faced backlash over its handling of high-demand events, such as the Taylor Swift “Eras Tour,” where fans were left infuriated by exorbitant ticket prices and the chaotic purchasing process. The company’s dynamic pricing model was blamed for tickets being sold at prices far beyond the reach of average fans, with many arguing that the practice amounted to nothing more than legalized scalping.

These incidents highlight a troubling pattern: Ticketmaster’s focus on maximizing profits often comes at the expense of the fans who support the artists. The company’s dominant position in the market gives it the power to set prices as high as the market will bear, knowing that fans have few, if any, alternatives.

My Take on It

As a fan, I can’t help but feel conflicted. On one hand, I want the artists I love to be fairly compensated. On the other hand, the relentless drive for profit by ticket sellers feels like it comes at my expense. The joy of seeing a live show shouldn’t come with the stress and uncertainty that dynamic pricing brings.

When I think back to the days when you could camp out at a ticket booth, knowing that the price printed on the ticket was what you’d pay, I feel a pang of nostalgia. While I appreciate the convenience of online ticket sales, I miss the simplicity and fairness of the old system.

In the end, it feels like we, the fans, are the ones paying the price—literally and figuratively. As long as the demand is there, and as long as we’re willing to pay, dynamic pricing isn’t going away. But that doesn’t mean we shouldn’t be critical of it. Understanding how these systems work is the first step in advocating for more transparent and fair practices in the future.

For those who managed to get a ticket, im certain they will enjoy the Oasis experience, for others (like me) - Don’t look back in anger!

If you are interested in further reading on the topic of Ticketmaster, dynamic pricing, and the controversies surrounding these practices here are some references below;

1. Pearl Jam vs. Ticketmaster: The battle against concert ticket monopolies (https://www.rollingstone.com/music/music-news/flashback-pearl-jam-vs-ticketmaster-lets-the-fans-buy-their-tickets-848775/)* - Rolling Stone provides a detailed account of Pearl Jam's fight against Ticketmaster in the 1990s, which highlights the early concerns over monopolistic practices in the ticketing industry.

2. How Ticketmaster’s dynamic pricing works and why it’s controversial

(https://www.npr.org/2022/11/15/1136931893/ticketmaster-taylor-swift-dynamic-pricing)* - NPR explores the mechanics of Ticketmaster's dynamic pricing model, including its impact on fans during the Taylor Swift "Eras Tour."

3. The History and Future of Ticketmaster (https://www.vox.com/2019/5/29/18642978/ticketmaster-live-nation-tickets-monopoly)** - Vox provides an in-depth look at Ticketmaster's history, the merger with Live Nation, and how the company's practices have shaped the modern concert ticket market.

4. Taylor Swift fans' outrage over Ticketmaster

(https://www.theverge.com/2022/11/18/23467689/taylor-swift-ticketmaster-congress-senate-hearing)**- The Verge covers the public and political fallout from Ticketmaster’s handling of ticket sales for Taylor Swift’s tour, which led to renewed scrutiny of the company.

5. Ticketmaster’s controversial fees explained

(https://www.wsj.com/articles/whats-really-driving-those-ticketmaster-fees-11659741644)* - The Wall Street Journal breaks down the various fees associated with buying tickets through Ticketmaster and why they are often so high.

These articles will help with understanding of the issues surrounding Ticketmaster, dynamic pricing, and the broader implications for fans and the live music industry.