From Wendy’s to Jet Blue, dynamic pricing—the practice of adjusting prices in response to market conditions—has drawn a lot of fire in the media recently. Perceived by most consumers as a tactic for unfairly boosting profits, it can be easy to write dynamic pricing off as too much of a risk to the reputation of your brand.
Yet, in the face of faltering fan attendance and ticket sales, it's proving to be an indispensable strategy at maintaining fair prices and event access for your fans. How? Let’s just take a look at the drawbacks of dynamic pricing’s only alternative: static pricing.
The Pitfalls of Static Pricing
The current unpredictability in fan attendance makes static pricing a risky bet. You need fans to commit early, so the last thing you want to do is price out your die-hards. It can be tempting to price low in this scenario, but this approach just invites opportunistic scalpers to scoop up valuable inventory, creating artificial scarcity that prices fans out of your event for good.
Dynamic pricing is the key to maintaining fair prices and fair access, no matter the industry. That said, it’s got to be built to protect consumers and, as you probably already suspect, not all dynamic pricing models are created equal.
An Algorithm Built to Fill Rooms
SmartPricing, Lyte’s dynamic pricing algorithm, is designed to fill seats by optimizing for high fan turnout—not just the highest price point per transaction. Built by data scientists who have spent the last decade boxing out scalpers and filling rooms to the brim, SmartPricing ensures every ticket on your marketplace is priced to convert.
Enabling SmartPricing doesn’t mean you give up control over your pricing strategy. From pricing caps and floors to what kind of inventory receives dynamic adjustments, you call the shots—backed by some of the brightest minds (and algorithms) in live entertainment.
Future Proof Your Revenue & Reputation Against Risk
In a landscape where consumer expectations and market conditions shift rapidly, dynamic pricing offers a way to balance brand integrity, fair fan access and profitability.
To learn more about how events like Lost Paradise, Anime NYC, Baja Beach Fest, Gulf Coast Jam and the Association of Volleyball Professionals (AVP) have successfully implemented dynamic pricing, drop us a line below.
