How to increase ticket sales through dynamic pricing
This case study explains how The Place - a centre for contemporary dance in the middle of London - introduced a new pricing system for all their performances in 2001. After fifteen months closed for refurbishment, the theatre re-opened with five new main prices, all with different booking conditions. The strategy described in this case study proved very effective with ticket yield increasing by 14%, ticket sales by 28% and net income by 44%.
Train operators and budget airlines sell allocations of their tickets at various prices so as to maximise revenue by selling all their seats. While low headline prices are used to entice bookers, there tend to be more conditions attached to the cheaper tickets, and more are available on less popular trains and flights.
So we introduced a fifth price band, ‘advance concessions’ at £7. Again, there would be a limited allocation of at least 20 tickets and like advance tickets they must be booked before the day of the performance. They would be exclusively available to the usual concession groups, but of course, these groups could get an even better deal with the available-to-all apex ticket.