Client Update - 6th September 2024

Last weekend, millions of eager fans spent hours trying to secure tickets for the highly anticipated Oasis reunion tour, set to take place in the UK and Ireland next summer. While many were thrilled to get their hands on tickets, others were disappointed to reach the front of the virtual queue only to be met with unexpectedly higher prices than originally stated. As a result, Ticketmaster, the site on which tickets were sold, along with Oasis, have faced scrutiny this week for implementing dynamic pricing on these tickets.

Dynamic or surge pricing is a strategy where the price of a product or service is not fixed but fluctuates based on various factors such as demand, time, competition, and even individual customer behaviour. Unlike normal pricing, where a set price is determined and remains stable for a period of time, dynamic pricing allows prices to be adjusted in real-time to maximise revenue in response to market conditions.

Ticketmaster’s use of dynamic pricing meant that, although fans were initially informed that standing tickets for Saturday's general sale would cost around £150 and seated tickets would range from £73 to £205, many who waited up to eight hours to purchase tickets were shocked to find prices had nearly tripled by the time they reached the front of the queue. As one of the most recognised names in ticket sales, Ticketmaster has faced significant backlash, but the company has defended its approach, stating that dynamic pricing, introduced in 2022 when concerts returned after the Covid-19 pandemic, was intended to prevent touts from hiking prices on secondary markets. However, critics argue that rather than curbing this issue, Ticketmaster has effectively taken on the role of the tout, profiting from these price increases. The company also clarified that it does not set ticket prices; instead, prices are determined by artists or promoters and can be fixed, or market based. This has led to criticism of Oasis, a band known for its working-class roots, for allowing pricing practices that disproportionately affect fans from similar backgrounds to their own.

Dynamic pricing is not a new concept, nor unique for concert tickets. It is the system used by airlines, train companies, and apps like Uber to ensure that prices reflect supply and demand. This is also not the first time Ticketmaster has come under fire for their use of dynamic pricing with fans of Harry Styles and Bruce Springsteen reporting similar issues when they attempted to get tickets for their US tours in 2022 and 2023. When asked about the dynamic pricing of his tickets in 2022 in an interview with ‘Rolling Stone’, Bruce Springsteen said that for the past 49 years, he has ‘pretty much been out there under market value’ and while he is aware it may have been unpopular, ‘the bottom line is that most of our tickets are totally affordable.’ However, fans have argued that tickets for his tour which rose to almost £4,000 before dynamically falling again can hardly be labelled as affordable.

The soaring prices of Oasis tickets sold last weekend have even caught the attention of the government, with Culture Secretary Lisa Nandy vowing to tackle "rip-off" ticket sales and reviewing the surge pricing practices used by agencies. On Sunday, Nandy expressed her dismay, saying, "After the incredible news of Oasis’s return, it is depressing to see vastly inflated prices excluding ordinary fans from enjoying their favourite band live."

Despite the backlash against both the ticket sellers and the band, some competition economists argue that dynamic pricing merely reflects the balance of supply and demand. They suggest that the high prices seen last weekend indicate the true market value of the tickets, given the overwhelming demand, arguing that the tickets that reached £300-£400, yet still sold out by Saturday night, suggests that customers were indeed willing to pay these prices. However, by Monday, consumer law experts noted that while dynamic pricing is not illegal, Ticketmaster may have breached consumer regulations if it were not clear to fans that ticket prices could increase, prompting investigations by both consumer watchdogs and the government.

Although Oasis and their promoter have yet to respond to the complaints, those long-term fans are likely to be more concerned with the return on their ticket investment as to whether the Gallagher brothers can remain on good terms until the end of the reunion tour, definitely maybe?

Do have a good weekend.