The Controversy of Dynamic Pricing: Lessons from the Oasis Ticket Scramble

Dynamic pricing is no longer just a buzzword; it's a reality causing waves in industries ranging from travel to retail and, more recently, live entertainment. This pricing strategy, which involves adjusting prices based on real-time demand, is used in various sectors. For instance, airlines use it to manage seat availability, hotels to fill empty rooms, and ride-sharing apps to match supply with demand. The Oasis concerts scheduled for 2025 brought this pricing strategy into the limelight, with thousands of fans feeling the sting of soaring ticket prices. While dynamic pricing can be a powerful tool for maximising revenue, it raises serious questions about customer experience, loyalty, and brand perception.

What Is Dynamic Pricing?

Dynamic pricing occurs when a seller adjusts prices based on real-time demand. It's not new - airlines, hotels, and ride-sharing apps have used it for years. But when Ticketmaster rolled it out for concert tickets, it caught the attention and ire of fans. In the case of Oasis, prices skyrocketed as demand surged, resulting in tickets being sold for hundreds of euros more than expected.

The Impact on Oasis Fans

With its iconic status and large, loyal fanbase, Oasis hadn't played in years, making its 2025 reunion a highly anticipated event. When tickets went on sale, they sold out across 17 UK and Irish concerts almost instantly. Fans paid far more than they'd budgeted, as dynamic pricing allowed costs to fluctuate with demand.

This led to frustration and a sense of unfairness, with many feeling exploited by a system capitalising on their enthusiasm and loyalty. It's not just about money; it's about trust and brand sentiment.

The Pros and Cons of Dynamic Pricing

Pros:

1. Maximises Revenue: Dynamic pricing captures the highest willingness to pay, ensuring sellers don't leave money on the table. 'Willingness to pay is the maximum amount a customer is willing to spend on a product or service. By adjusting prices based on this, dynamic pricing can ensure that sellers get the most out of each sale.
2. Manages Demand: It effectively controls demand, preventing overbooking or stock shortages.

Cons:

1. Erodes Trust: Customers feel taken advantage of when they see prices skyrocketing, leading to negative feelings toward the brand.
2. Loyalty at Risk: Loyal customers who expect some level of consistency and predictability may feel betrayed.

Lessons for Businesses

1. Transparency is Key: When implementing dynamic pricing, transparency is crucial. Communicate clearly with customers about why prices change. This will manage expectations and reassure them that they are not being 'ripped off '.
2. Reward Loyalty: Consider offering loyal customers pre-sales or fixed-price tickets as a gesture of appreciation. This will build goodwill and cushion the blow of dynamic pricing changes.
3. Limit the Volatility: Sudden, sharp price increases create outrage. Using caps or gradual adjustments can balance revenue maximisation with customer experience.

Our Take

Dynamic pricing can be a powerful tool but is also a double-edged sword. The Oasis ticket saga is a textbook example of how poorly managed dynamic pricing can damage a brand. For retailers, the lesson is clear: prioritise customer experience over short-term gains. Use dynamic pricing with empathy, and remember - a loyal customer is worth far more in the long run than a one-time surge in profit. Your customers are not just transactions; they are the lifeblood of your business.

Final Thought

Happy customers spend more. If your pricing strategy leaves them feeling gouged, you're not just losing a sale; you're losing a relationship. Dynamic pricing should enhance the customer experience, not deter it.

If you would like an introductory conversation with no obligation about how we can assist you in prioritising and implementing business improvements, please get in touch with us at https://www.retailcx.ie/contact.