We have a long history and exceptional pedigree in intelligent pricing automation, initially in digital advertising and then in hotels. And now we are providing pricing automation to the live entertainment industry.
NB: This is an article from Atomize, one of our Expert Partners
It had not been our intention to modify our solution for live events but an opportunity to work with one of the most recognized sports brands in the world presented itself and we embraced it.
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Working closely with an experienced event organizer we were able to combine their knowledge of live entertainment with our expertise in pricing and AI to develop a best-in-class solution.
Lessons learned from dynamic pricing in the hotel industry
The headlines in the press would suggest that using dynamic pricing for events is a risk not worth taking yet any sensible hotelier will advise that this approach allows them to improve their margins, invest more in their product and create memorable guest experiences. They will also state that failure to deliver value, by charging outrageous prices, will cause long-lasting reputational damage far greater than any short-term gains. These are valuable lessons and it is now evident to a growing number of progressive event organizers that a customer-centric approach to pricing automation is allowing them to successfully walk the tightrope between long-term financial viability and delivering fan value. Increasing ticket prices to cover soaring costs is achievable without a backlash from fans when the organizer offers greater product choice and a wider range of additional services.
Optimize pricing according to changing demand and capture all of the value from your event
At the core of our solution is a sophisticated pricing engine that uses machine learning to model demand and optimize prices in real-time. It does this by ingesting and analyzing live reservation data and other demand signals such as website searches. This means prices increase (and decrease) along a pricing continuum so the organizer is capturing all of the value from their event. Charging the optimal price at all times is a huge benefit for our clients. They had previously used a tiered pricing model so they would only modify ticket prices to predefined price points based on the number of tickets sold even if the optimal price lay between two tiers (see figure below). Now their prices change incrementally based on the actual market demand ensuring no revenue opportunities are lost.
