What is ‘dynamic pricing,’ and why are Oasis fans furious about it?
Thousands of Oasis fans waited long hours in virtual queues this weekend to get their hands on tickets for the British band’s reunion shows next summer, only to find that prices had been hiked as part of a “dynamic pricing” scheme.
Many fans who waited for more than three hours thinking they would pay the initially advertised rate of 148.50 pounds (around $264 Cdn) ended up paying 355.20 pounds ($631 Cdn).
What is dynamic pricing?
Dynamic pricing, also known as surge pricing, is a strategy in which businesses push up prices at times of high demand. This is commonly seen in airline ticket prices and hotel room rates during holiday seasons, as well as Uber surge pricing during peak traffic hours.
Who is responsible for dynamic pricing?
According to Ticketmaster,the artist or promoters who are responsible for determining the number of tickets and set the face value price of tickets. They can opt for dynamic pricing if they want, and it is implemented once Ticketmaster gets their approval.
The agency representing Oasis did not immediately comment.
Is dynamic pricing legal?
While dynamic pricing might seem unfair to customers, it is considered legal as long as the company follows laws and regulations related to pricing transparency, consumer protection and fair competition.
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Why was it introduced?
Ticketmaster first introduced dynamic pricing in 2022, saying the practice was being used to try to stop touts, also known as ticket scalpers, according to the BBC. Touts are people who acquire multiple tickets to sell them off at a profit later.
In Britain, marketplace Viagogo and StubHub are the two main secondary ticketing websites. Ticketmaster shut down its resale sites, GetMeIn and Seatwave, in 2018 after persistent criticism of ticket reselling by touts.
Which artists have opted in or out?
Dynamic pricing had been used in the U.K. for sales by Harry Styles, Coldplay and Blackpink, according to the BBC.
Bruce Springsteen gave Live Nation the green light to introduce dynamic pricing for his tour dates last year, the BBC said. Taylor Swift chose to opt out of using dynamic pricing on her The Eras Tour.
How are affected governments responding to the Oasis ticket sale?
After the Oasis ticket sale, Britain’s government said on Sunday it would investigate how prices for concert tickets sold on official websites are hiked when demand surges.
Culture minister Lisa Nandy said it was “depressing to see vastly inflated prices” on sites operated by authorized retailers.
The government will include issues around the transparency and use of dynamic pricing in an already planned review of ticket sales and the protection of consumers.
“The Competition and Markets Authority is urgently reviewing recent developments in the ticketing market, including the way dynamic pricing is being used in the primary market,” Britain’s antitrust regulator said on Sept. 3.
Dublin MEP Regina Doherty has called for an investigation into Ticketmaster by Ireland’s Competition and Consumer Protection Commission (CCPC).
The CCPC believes there are legitimate concerns around the consumer experiences this weekend and is reviewing the situation, a spokesperson said. It will consider all options to ensure consumer protection law is followed.
Another Irish MEP, Cynthia Ní Mhurchú, said she would call for the European Commission to investigate the situation. She is a member of the EU Parliament’s Internal Market and Consumer Protection (IMCO) committee.
What is the stance of other governments?
For years, concert fans and politicians in numerous countries have been calling for a re-examination of Live Nation’s purchase of Ticketmaster in 2010.
That intensified after the ticket seller in 2022 botched sales for Swift’s first concert tour in years, sending fans into hours-long online queues and charging prices that customers said were too high.
The U.S. Department of Justice filed an antitrust suit against Live Nation LYV.N and its ticket-selling unit, Ticketmaster, in April for allegedly monopolizing markets across the live concert industry.
Last year, the European Commission said it was monitoring dynamic pricing, emphasizing that EU law prohibits dominant companies from imposing excessively high prices.
Back in 2019, Canada’s Competition Bureau ordered Ticketmaster to pay a penalty of $4.5 million for misleading customers after an investigation found that additional fees that weren’t disclosed to customers upfront could add 20 to 65 per cent to the advertised price of online tickets.
Since then, Ticketmaster has been required to display the face value price along with all associated fees in Canada, called all-in pricing.
Dynamic pricing for concert tickets has not received any serious investigation by officials in Canada yet.
