The Ethical Dilemma of Dynamic Pricing in Ticketing
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The Ethical Dilemma of Dynamic Pricing in Ticketing

→ The current problem

Ticketmaster's handling of the Oasis reunion ticket sales this weekend has sparked significant concern. Their use of dynamic pricing and behavioural nudges isn't just frustrating for fans—it raises ethical issues that demand our attention.

But what does that really mean?

As former footballer Stan Collymore aptly put it, "Ticket companies know what they are doing. The 'buzz' of getting into the buy phase after 4 hours is the same dopamine hit gamblers experience. At that stage, a £150 to £400 price rise is no longer a choice, it's an impulse buy. An unethical/should be illegal business practice."

This sheds light on how Ticketmaster's tactics exploit human psychology. After spending hours in a virtual queue, fans finally get the chance to purchase tickets, but by then, they're often primed to accept inflated prices without fully considering the cost. The combination of dynamic pricing and behavioural nudges effectively turns what should be a straightforward purchase into an impulsive decision, driven by the rush of finally reaching the checkout stage.

→ Ethical Concerns and the Broader Context

Dynamic pricing is often compared to the practices used in hotels and airlines, where prices fluctuate based on demand. Ticketmaster, owned by the US entertainment giant Live Nation, defends this model as a way to discourage ticket touts by aligning prices more closely with market value. They also argue that these "in-demand" fees are agreed upon in advance with artists and their management.

However, when applied to cultural events that hold deep significance for fans, this approach can feel particularly exploitative. For example, in Ireland, fans trying to buy tickets for Oasis's Croke Park gigs at €86.50 (£73) were faced with prices of €415.50 for the same ticket due to dynamic pricing. This has left many feeling that the system prioritises profits over fairness and transparency, which raises ethical questions.

→ Design Failures and the Need for Better Implementation

Beyond pricing, the user experience on Ticketmaster’s platform also warrants scrutiny. Error messages like "something went wrong" during high-demand events are more than just frustrating—they undermine consumer trust. Such issues could be mitigated with better UX design that prioritises user guidance and support, rather than pushing users toward higher-priced options through what many perceive as dark UX patterns.

While dynamic pricing as a concept isn’t inherently unethical, its implementation, especially on platforms with as much market dominance as Ticketmaster, must be executed with a focus on transparency and fairness.

→ The Shared Responsibility of the Industry

It's important to acknowledge that Ticketmaster does not bear sole responsibility for these practices. As Jonathan Brown, chief executive of the Society of Ticket Agents and Retailers, points out, dynamic pricing policies are often set by artists and their management. They argue that consumers are becoming accustomed to these fluctuations, similar to booking a hotel or flight.

However, this doesn’t negate the need for the entire industry, including both artists and ticketing platforms, to consider the ethical implications of such practices.

→ Is there a better way?

I love design & innovation, but I can't help but recall getting tickets to see Oasis at Maine Road in 1996. It was as simple as visiting the box office or making a phone call. Expectations were clear, and despite the queues, there was a human connection that today's digital platforms often lack.

While the technology has evolved, the essence of a good customer experience hasn't changed—it's about trust, fairness, and managing expectations.

This is where both the artists and platforms like Ticketmaster can do better.

→ Areas to Explore To Make It Better

  1. Transparency in Pricing – Platforms like Ticketmaster could provide clearer explanations of how prices are determined, ensuring that fans understand why prices fluctuate and what they’re paying for. This transparency should also extend to the role of bands and artists in this process. There has been much discussion about whether Oasis or their management called for the dynamic pricing strategy used in their reunion tour. If artists are indeed influencing these pricing models, it’s critical that this is communicated to the fans. It would help shift the narrative from a blame game to a more informed discussion about the realities of pricing in the live music industry.
  2. Ethical UX Design – Moving away from dark UX patterns that exploit human psychology towards designs that support informed decision-making could create a more trustworthy platform. For instance, replacing countdown timers that pressure users into making quick decisions with informative prompts that explain why certain tickets are priced higher could empower fans to make more conscious choices. Additionally, clear and consistent messaging throughout the purchasing process can reduce frustration and build trust. Imagine a ticketing platform that prioritises user education and clarity over urgency—such a shift could improve the buying experience.
  3. Fan-Centric Policies – Implementing caps on price increases during high-demand periods could protect fans from exorbitant ticket prices driven by dynamic pricing. Additionally, offering loyalty programs or rewards for fans who have been in the queue for extended periods could foster a sense of appreciation and fairness. This could include early access to future events, discounts on merchandise, or even exclusive content. By putting the fan experience at the centre of the ticketing process, platforms can build stronger, more loyal customer bases while maintaining profitability.
  4. Blockchain for Transparency and Security – Blockchain technology could be leveraged to create a transparent and secure ticketing system. Each ticket could be uniquely coded and tracked on a blockchain ledger, making it nearly impossible to counterfeit or scalp tickets. This would ensure that tickets reach genuine fans at fair prices and could also facilitate easy resale within a controlled, transparent environment. Blockchain could also support transparent auctions for high-demand events, ensuring that fans understand exactly how prices are determined.
  5. AI-Powered Demand Forecasting and Pricing – Instead of using dynamic pricing purely to maximise profit, AI could be employed to forecast demand more accurately and set fair prices accordingly. By analysing data from past events, social media trends, and even weather forecasts, AI could help predict which events will be in high demand and allow platforms to set prices that reflect true demand while maintaining fairness. This could also help in pre-allocating tickets to different pricing tiers in a way that doesn’t feel exploitative but rather aims to match supply with demand more equitably.
  6. Dynamic Seating Optimisation – Another innovation could involve AI and machine learning algorithms to optimise seating arrangements and pricing. Instead of charging higher prices for all seats in a desirable section, platforms could use AI to dynamically adjust prices based on real-time demand and seat desirability, offering fans more choices and flexibility. For example, if certain sections are under booked, prices could be adjusted downward in real-time, encouraging sales without exploiting those willing to pay more.
  7. Alternatively perhaps it’s time to bring back queuing in a tent outside the box office. As Louiza Cookson-Rabouhi , a musician herself, suggests, "Who can hack a tent stay in the middle of winter is the deserved attendee to the gig."

→ Your Thoughts?

Did you manage to get tickets for the Oasis reunion? What was your experience like?

This article comes from a place of wanting better for all of us, not just from frustration over missing out –?I'll be there!

The goal is to spark a broader conversation about how the ticketing industry can improve, for the benefit of fans and artists alike. If work in the industry and would like to learn more about innovation in your world; then drop me a message.

Thanks for reading and share your thoughts below!

Mark Webster

Designing Better Futures

2 个月

Oasis fans queueing for tickets at Maine Road, Manchester, 1996. Photos ? Jon Shard, all rights reserved.

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Simon Garrard

Head of Project Operations at Magnetic | Managing Consultant

2 个月

To build on Jacqui Gibbons' point while Uber could be more transparent about their take on microeconomics, at least there is a perverse value to the consumer in surge pricing as it's intended to bring more drivers out to meet demand (or originally was). Dynamic pricing doesn't seem to offer anything like mutual value! But then the promotion/venue owners do effectively operate a monopoly, so until that changes, I suspect we'll see more ploys like this to stack the market in their favour. But if anyone really wants to do something about this (in the nicest possible way ;) )? Don't buy tickets to the reunion/alimony tour and put that money towards going to see a load of local music, in small venues!

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Amanda Howe

Expert Partner at Bain & Company

2 个月

Very Good article. Thanks for sharing with me Dean Wilson

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Dean Wilson

Product and service design

2 个月

On another less frivolous note: I think it was also worrying that at least one person I know, who ended up stretching to £700 for two tickets was offered Klarna as a payment method. Taking what Stan Collymore has to say on the matter, this is a bit like a bookies taking credit card payments, which I believe is prohibited, for obvious reasons. Yes, I know there is nothing stopping anyone from buying tickets on a credit card, and it's a useful way to spread payment. However, given the context and the heightened emotion, we have to question if it's entirely appropriate.

Dean Wilson

Product and service design

2 个月

Trevor and Simon would never let this happen

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