What if shows hiked up prices last minute instead of discounting?

[(Insert Clever Name)]

Would this increase profit? In the very different industry of air travel, companies used to discount right before the flight to fill seats, but then realized that by hiking up prices before the flight, they could make MORE money. I know that its different but, could this be a viable way for shows to make an extra buck?

[Daniel M]

For a highly-coveted ticket to a consistently sold out show, maybe, but for shows with hundreds of empty seats, I don't think people would be willing to pay those prices.

[ErmengardeStopSniveling]

It's all supply-and-demand. If King Kong has 500 seats available at 24 hours to curtain, those aren't going to magically disappear, so you might as well discount them to try to get some people in (while keeping limited premium tix for people who want that experience). If you're Hadestown or To Kill A Mockingbird with very low availability day-of, you could charge $700. Shows are always trying to combat the people who walk up to the box office window wearing diamonds & a mink coat and ask "what are the cheapest seats?"

The difference with air travel is that if you're buying a last-minute ticket, you NEED to get somewhere; 90% of shows don't have that kind of demand. One other issue: with airlines, pricing is automated, so rates can rise and fall with no human labor. In theatre, while there is a system that resembles dynamic pricing, it involves the box office treasurers going in and changing the prices, usually at the request of the GM.

Yay capitalism!

[VintageSnarker]

ErmengardeStopSniveling said: "The difference with air travel is that if you're buying a last-minute ticket, youNEEDto get somewhere; 90% of shows don't have that kind of demand."

This. If you need to get from NY to LA for Thanksgiving but you didn't book the tickets until that week, they can stick you with a overpriced ticket because you need to make that trip. If you wait last minute to see a show and the only thing left are really expensive seats you can still see another show, see a movie, go out to dinner, etc. without your night being ruined. The only reason to employ this model would maybe be to incentivize advance ticket purchases over same day purchases. But I think the benefits outweigh the costs. I think discount codes and youth/subscriber discounts already push the advance ticket sales and same day ticket sales work better for a lot of people. 

[goldenboy]

Why don't you keep this idea to yourself.

 

With Hadestown and Ain't Too Proud tickets for going over $200..... do we really need this idea?

Ticket prices are already too damn high. 

[haterobics]

(Insert Clever Name) said: "Would this increase profit?"

No, it would decrease attendance. Plus, with dynamic pricing, they already tried making more money on these tickets and failed. Discounting isn't a perk, but the downstream effect of a lack of interest at the price they were trying to make initially.

[Mike Barrett]

I see your line of thinking but it just doesn't work the same for theatre. If theres a flight on a Sunday evening before work the next day and its the only flight, Ill pay to get on because I cant afford to miss work. If a Broadway show is too expensive, I just look for another date or simply don't buy. While some shows are a MUST for people, they aren't a true necessity like flying can be. Like for example Id like to see Hadestown, but not at these prices. So I'll wait. The reason seats are empty at Broadway shows normally is because they are too expensive, where a flight just may happen to have a seat available. 

[ccbway]

Mike Barrett said: "I see your line of thinking but it just doesn't work the same for theatre. If theres a flight on a Sunday evening before work the next day and its the only flight, Ill pay to get on because I cant afford to miss work. If a Broadway show is too expensive, I just look for another date or simply don't buy. While some shows are a MUST for people, they aren't a true necessity like flying can be. Like for example Id like to see Hadestown, but not at these prices. So I'll wait. The reason seats are empty at Broadway shows normally is because they are too expensive, where a flight just may happen to have a seat available."

Exactly this. If it gets more expensive, more people would just skip it.

[Fosse76]

If tickets were raised closer to performance time, then they would remain unsold. People showing up last minute are usually just tourists who are trying to see a show, any show. They aren't going to pay more.

[(Insert Clever Name)]

goldenboy said: "Why don't you keep this idea to yourself.



With Hadestown and Ain't Too Proud tickets for going over $200..... do we really need this idea?

Ticket prices are already too damn high."

I don’t think any producer is reading my posts here and thinking it’s an amazing idea, it was more of a thought experiment. Broadway is a buisness and always will be. If we want shows to continue to be funded, some must be profitable, and charging what they can will bring in revenue. Almost every show ends up discounting at some point, DEH that was a hard ticket can go on TKTS for $60 now. You can still see shows for reasonable prices, it’s about waiting.