What is dynamic pricing and who does it as government promises review after Oasis ticketmaster row
THERE has been anger from Oasis fans after standard tickets for their tour more than doubled on Ticketmaster sparking a government review.
Surge, or dynamic pricing is when well-known brands adjust their prices during times of high demand through.
Businesses across various sectors use the method during busier times to make extra profit or counteract higher costs.
The inflated selling of Oasis tickets has brought concerns over dynamic pricing into the spotlight.
There was uproar when fans of the Britpop favourites saw prices for the tickets more than double from £148 to £355 on Ticketmaster.
Ticketmaster said it does not set prices, and its website says this is down to the “event organiser” who “has priced these tickets according to their market value”.
Lots of fans also missed out on the reunion tour tickets as they battled with website issues, and being mislabelled as bots, before Oasis announced all 17 shows had sold out.
The Culture Secretary Lisa Nandy has now said that surge pricing would be included in a Government review of the secondary gig sales market.
Ms Nandy said: “This Government is committed to putting fans back at the heart of music.
“So we will include issues around the transparency and use of dynamic pricing, including the technology around queuing systems which incentivise it, in our forthcoming consultation on consumer protections for ticket resales.”
What is dynamic pricing?
Dynamic pricing started being employed by airlines in the 1980s and is widely used across the travel and hospitality industry today.
Lisa Webb, Which? consumer law expert, said: “Dynamic pricing is becoming an increasingly widespread practice, with service providers adjusting the cost of everything from concert tickets to taxi rides based on demand, often in real time.
“It’s essential that companies are transparent when applying dynamic pricing, so that consumers fully understand why and how the price they pay for goods and services may fluctuate.”
“It will be incredibly frustrating for Oasis fans who got up early and battled through the queues only to find that some ticket prices have surged due to dynamic prices.”
When you’re looking to fork out for something like concert tickets or a holiday, working out whether you can afford it is of the first decisions you have to make.
You don’t want to run the risk of paying for something that pushes you over your budget.
But dynamic pricing can make this process a lot harder than it needs to be.
How to get Oasis tickets if you missed out
MISSING out on tickets to see your favourite band can be genuinely devastating.
Senior Consumer Reporter Olivia Marshall explains how you can still bag tickets to see Oasis.
When I heard the news that Britpop favourites Oasis were reuniting after 15 years, my thoughts immediately turned to the inevitable scramble for tickets to next year’s tour.
Despite playing 17 dates across the UK and Ireland, many will have been left empty handed after yesterday’s general sale.
If you’re one of the unlucky ones who missed out, stop crying your heart out, because there may be hopes of a ticket yet.
Oasis have partnered with resale platform Twickets. The site only allows fans to resell tickets at face value. This means that sellers can’t add more than 15 per cent to the price of the ticket to cover booking fees and they can also reduce the price if they’re not selling.
Delivery is agreed between the buyer and the seller, so Twickets can see who is responsible should a ticket not be delivered on time.
You can also set up alerts on the Twickets app, so you’ll be the first to know if Oasis tickets become available.
Ticketmaster also has its own Fan-to-Fan resale platform, which works on the same premise.
If you’re thinking of just rolling with it and buying from an unauthorised platform, you may want to think again.
The Gallagher brothers have already said that selling tickets through unauthorised resale platforms will breach the terms and conditions and tickets may be cancelled.
You also run the risk of scammers sliding away with your cash by going through unofficial routes.
Scammers will piggyback onto popular events and earlier this year, Lloyds Bank estimated that fans of Taylor Swift had lost more than £1million to ticket scammers ahead of her UK tour.
Don’t feel pressured to pay rip off prices. Keep an eye on official platforms and you may find you’re making memories that will live forever at Oasis after all.
Which companies use surge pricing?
Ticketmaster
Ticketmaster is a website and app which sells tickets for concerts and other live entertainment events.
It does not set the price of tickets, instead allowing promoters and artists to decide on the price of concerts themselves.
A spokesperson for the company told The Sun it uses dynamic pricing when demand for artists is higher as it offers them more value and discourages touts from cashing in.
But the pricing model has seen music fans paying over the odds on tickets for popular bands and musicians including Oasis and Bruce Springsteen.
Airbnb
Airbnb is a platform where property owners can advertise rooms or entire homes for an agreed price.
Prices vary depending on what time of year you’re staying, and of course, the location.
But the platform also has a “Smart Pricing” feature which hosts can trigger that automatically changes the price of their accommodation based on demand.
The website says the tool is helpful to “optimise pricing without constantly monitoring it”.
And while it means customers may pay lower prices during quieter periods, they could have to fork out more at times of high demand.
A spokesperson for the company previously told The Sun that hosts are “always responsible for their price and they can adjust their nightly prices at any time”, which included switching off or overriding Smart Pricing.
Uber
Uber has used surge pricing for years to charge riders when demand for cars spikes relative to the number of drivers available.
On its website, Uber states that that times when surge pricing is most likely to be introduces is during bad weather, rush hour and special events, when large numbers of people want to request an Uber all at the same time.
The company adds: “In these cases of very high demand, prices may increase to help ensure that those who need a driver can get one.
“This system is called surge pricing, and it lets the Uber app continue to be a reliable choice.”
When prices are surging, an additional surge amount, or an upfront price including the surge amount will be shown, Uber said.
Ubitricity and Genie Point
Three electric vehicle charging companies charge customers different prices depending on what day they plug in.
Ubitricity, part of The Shell Group, started hiking prices for customers during peak hours in January 2023.
It now charges 53p per kWh for anyone charging between 6am and 11pm and 45p between 11pm and 6am.
Meanwhile, Genie Point also charges customers 79p per kWh to plug in between 8am and 7.59pm each day and 75p between 8pm and 7.59am.
Stonegate
Stonegate, with 4,000 boozers across the UK, angered punters last year after hiking the price of drinks between 5-7pm.
The chain, which runs the Slug and Lettuce and Yates pubs, started charging more on midweek early evenings and weekends.
A spokesperson previously told The Sun: “On occasions, pricing may marginally increase due to increased cost demands”, including the need for more staff.
But the move has been met with backlash by punters.
One said: “Time to call time on patronising their pubs,” while another added: “Well that should stop them being so busy.”
The Sun has contacted Stonegate to find out if its surge pricing hours are still in place.
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