Feb. 13, 2023

40: Airline Ticket Model May Decide Entertainment Pricing, In 80 Seconds

40: Airline Ticket Model May Decide Entertainment Pricing, In 80 Seconds
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Pricing Entertainment
Burgernomics host, Ross MacDowell summarises how the airlines Dynamic Ticket Pricing Model is now being adopted by the live entertainment industry. The system adjusts ticket prices based on supply and demand, but while musicians like Bruce Springsteen and Taylor Swift are jumping on board, music promoters are hesitant due to a potential customer backlash. This 80 second summary is great for dinner party conversation, impressing your boss or just because you need to understand why we pay what we pay for concert prices.

Airline Ticket Model May Decide Entertainment Pricing, In 80 Seconds

Well, let me tell you, airlines are clever buggers, aren’t they? They've figured out a way to maximise their sales revenue by using something called Dynamic Ticket Pricing. Basically, the closer you book your flight, the fewer seats are available, so you end up paying more for them. It's classic supply and demand?

And it's not just airlines, even our favourite musicians want in on this game. They get a cut from ticket sales, and they don't want to miss out on their share when ticket scalpers swoop in and make a killing. But if they lower the prices of unsold seats, then folks who paid full price ain't gonna be too happy.

That's where this Dynamic Pricing system comes in, it's all based on how many seats are available and how many people are clamouring for 'em. It's a win-win for the musicians and the promoters.

Bruce Springsteen, Taylor Swift, Drake, Alicia Keys, they all using it. But the music promoters, they're a little hesitant, afraid of the customer backlash. Even though, those same customers are perfectly okay with it for airline tickets.

That's why I've got Micky Newton, founder of, A Day On The Green and a music industry legend, joining me, Ross MacDowell, on the Burgernomics podcast. We'll demystify the economics behind the live music business in the Rocknomics episode. Make sure you tune in, subscribe and leave a review, because if you don’t, those nasty algorithms will rear up and strangle Burgernomics while it’s trying to tell you, what’s really going on.