How to implement dynamic pricing
The Santa Fe Opera is an international summer festival with an outdoor venue capacity of slightly over 2,200. This case study explains how initial data analysis by The Pricing Institute confirmed a slight but steady decline in the Opera's capacity and revenue over a series of seasons. You'll find details about how the opera responded to this decline by implementing a successful dynamic pricing strategy. They created an empowered staff team who were able to make changes, meet each week to review pricing opportunities and evaluate the impact of past changes.
Dynamic pricing was applied to all performances. At the end of the season The Santa Fe Opera sold 9,384 tickets at increased prices and 225 at reduced prices. Top prices rose from $183 to $225 for the most popular performances. The Santa Fe Opera earned over $130,000 in incremental revenues. Santa Fe has adopted a three-tier pricing approach for their 2012 Season, anticipating each performance’s demand by repertory and previous sales patterns. The commitment of the pricing team over the summer helped instill a new revenue management culture throughout the organization.