Ticketmaster UK boss Andrew Parsons defends dynamic pricing model: 'We don't change pricing'

In a recent interview, Andrew Parsons, Managing Director of Ticketmaster UK, addressed the ongoing debate surrounding the company's dynamic pricing model. This pricing strategy, which adjusts ticket prices based on demand, has faced criticism from both consumers and industry professionals who argue that it leads to inflated costs for popular events.

Parsons emphasized that the dynamic pricing model is designed to reflect market demand and ensure that ticket prices remain fair and competitive. He argued that this approach helps to prevent ticket scalping and ensures that more revenue goes directly to the artists and event organizers. Parsons also highlighted that Ticketmaster does not arbitrarily change prices but responds to real-time market conditions to offer the best value to consumers.

ALSO SEE: Sabrina Carpenter and Dolly Parton Join Forces on ‘Short n’ Sweet’ Deluxe Edition Album

Dynamic pricing in the live entertainment industry, including Ticketmaster

Dynamic pricing has become increasingly prevalent in the live entertainment sector. Proponents argue that it allows for better revenue management and ensures that ticket prices align with consumer demand. However, critics contend that it can lead to price surges for high-demand events, making it difficult for average consumers to afford tickets.

The challenge for companies like Ticketmaster lies in balancing profitability with accessibility. While dynamic pricing can maximize revenue, it is essential to consider the impact on consumers and ensure that live events remain accessible to a broad audience. Transparent communication about pricing strategies and the rationale behind them can help build trust with consumers and mitigate criticism.

The future of ticket pricing strategies

As the live entertainment industry continues to evolve, ticket pricing strategies will likely remain a topic of discussion. Companies must navigate the complexities of market demand, consumer expectations, and ethical considerations to develop pricing models that are both profitable and fair. Ongoing dialogue between industry stakeholders and consumers will be crucial in shaping the future of ticket pricing.

“We don’t change prices in any automated or algorithmic way,” Parsons told MPs. “Prices are set in advance with event organisers and their teams at the prices that they want them to be available", he added.

"I think in certain instances, because of that fact, some of the cheaper tickets which may be available will inevitably sell through most quickly, meaning that the tickets that the fans see at a later date will be at a higher price, which can give the illusion that those tickets have changed price, but they have not, we can be very clear that there’s no technology that’s driving any price change", he said.

"The price that you see on the Ticketmaster website is the price that the event organiser wanted that to be, including all fees, and that’s the only price that we will ever display", Parsons finished.