Recently, I saw a piece covered by two TV stations that mentioned that the “Top of the Rock” was moving towards “Dynamic Pricing!”
The “Top of the Rock”, also known as the rooftop of Rockefeller Center, is known for its unobstructed views of iconic landmarks, such as the Empire State Building, Central Park, the Chrysler Building, the George Washington Bridge, the Brooklyn Bridge, One World Trade Center and the Statue of Liberty!
You might be asking yourself, “What does this mean?”
Have you noticed in recent years that the cost of attending live events, whether it’s a major sports game, a concert, or a Broadway Show has skyrocketed? This phenomenon, often called “FunFlation,” refers to the rising prices of entertainment due to increased demand and evolving ticket pricing strategies.
One of the biggest drivers of ‘FunFlation” is “Dynamic Pricing!” This is similar to airline and hotel pricing, where vacationers are charged more money during spring break compared to the vacation offseason. Dynamic Pricing uses an algorithmic model that adjusts ticket prices based on demand, often making events far more expensive than they were just a few years ago.
The “Dynamic Pricing Model” benefits organizers, artists, and teams by maximizing revenue. I call it a MONEY GRAB! It also drives up costs for fans, especially for high-profile events! Some artists have deflected blame to ticket companies. The situation is murky at best.
The “Top of the Rock” is a perfect example of what “Dynamic Pricing” is doing. I went to their website, which advertises an adult ticket (ages 13+) for between $40-$61. The prices can change by time slot as the early afternoon prices were $40 each; however, going during the sunset hour can cost $100 each.
Ticketmaster’s Dynamic Pricing Model can change ticket prices in the middle of the on-sale process based on demand. In the “old days,” which can be only 3 years ago, ticket prices for entertainment events were fixed, with different tiers based on seat location and venue capacity. This means that you can buy a ticket, for example, for $100 during a “pre-sale” event that can double in price 15 minutes later, based on demand. The “re-sale” sites like Stubhub can be even worse as ticketholders can jack up the price even more after or during the ticket sale period.
For the first two years of the COVID-19 pandemic, there was no live in-person entertainment. I remember when major league baseball and NBA teams were playing in empty stadia with cardboard boxes in seats instead of fans. Once this ended, demand for live entertainment skyrocketed!
Live Nation statistics show live music stadium shows are up 60% this year over the first two months of 2024. Numerous artists are planning big tours for 2025, such as Bruce Springsteen, Beyonce (with Post Malone), Pitbull, Sabrina Carpenter, Billy Joe,l and AC/DC (in Europe, not the USA), to name a few.
Some tips to avoid being a victim of “Dynamic Pricing” are:
In closing, it makes financial sense to do your homework when buying tickets for live entertainment! ENJOY the shows!