Dynamic Pricing: How Oasis ticket sales exposed a much bigger problem

Going back in history, we can see dynamic pricing where merchants would haggle overprices based on demand, supply, and even geopolitical conditions! Fast-forward to today's digital era, where dynamic pricing has become smarter and more sophisticated, thanks to technology and data science.

Ticketmaster brought in dynamic pricing in 2018 after seeing its success in other markets. The basics are, to adjust prices in real-time to reflect market demand. Several reasons that Ticketmaster stated for the reasons behind “dynamic pricing” include the supply and demand aspect for certain tickets, with the idea that those tickets should be adjusted to reflect the “higher demand” for certain concerts.

Ticketmaster also pointed out that the move was to combat the secondary ticket market, where popular events would sell out only to have those tickets appear on websites such as Viagogo or StubHub for an inflated price. The idea was that the money for an increased cost of a ticket would return to the artists rather than to those who bulk bought tickets to resell elsewhere. So despite Oasis releasing a tweet saying,

"Please note, Oasis Live ‘25 tickets can only be resold at face value via @TicketmasterUK and @Twickets! Tickets appearing on other secondary ticketing sites are either counterfeit or will be cancelled by the promoters."

They are in fact to blame for the rise in prices. For artists and promoters, dynamic pricing is a way to maximise earnings from ticket sales. Like I said above, adjusting prices to match demand, they can generate more revenue than they would with a fixed pricing model, especially for in-demand events. In 'high-demand situations, the profit margins on tickets can be significantly increased, benefiting both the artists promoters and the ticket suppliers. Let’s face it, an Oasis reunion after 15 years was never going to be a low demand event, was it?

Quite the opposite. Which I’m sure the promoter, the ticket sellers and the band knew anyway. And although it looks harsh on the outside, all are businesses that work for profit and if we were in the same situation we would probably do the same. Or would we? Taylor Swift and Ed Sheeran refused to add a dynamic pricing model to their world tour ticket sales. I’m led to believe they increased their prices on the tickets to gain profit that way. Ticket sales and prices would also be reflected in the venues the artists were playing in, but when you’re talking Oasis, Taylor Swift and Ed Sheeran these are massive stadium events. Meaning whatever, either model is going to make money if priced correctly.

The most lucrative world concert tour to date is estimated to be Swift’s Eras tour, which has grossed more than $1bn from 60 shows. This is followed by Coldplay, who made $945m over 153 shows between 2022 and 2024. Elton John, a perennial tourer, made $939m from 330 shows in his farewell extravaganza that ran from 2018 to 2023. Ed Sheeran comes in at number 4 at $776m and U2 make up the top 5, grossing $736m. Eye watering numbers, whichever model of pricing you choose.

One thing that I think has gone under the radar is that there are three promoters for the Oasis reunion tour, all with links to one company. That company is Live Nation, the US multinational which just happens to own Ticketmaster, the ticket supplier for the tour. Not only this but if you do manage to get to a gig, Live Nation have links to merchandise companies, security companies and even some of the actual venues. You don’t need to be a rocket scientist to work out what’s going on here.

Over in the US, the Justice Department, along with 30 state and district attorneys general, have filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its wholly-owned subsidiary, Ticketmaster LLC (Live Nation-Ticketmaster) for monopolisation and other unlawful conduct that thwarts competition in markets across the live entertainment industry. The lawsuit, which includes a request for structural relief, seeks to restore competition in the live concert industry, provide better choices at lower prices for fans, and open venue doors for working musicians and other performance artists.

All it took was the outrage of a few hundred thousand gig goers to bring to the attention of the UK government a problem that millions of travellers have faced ever since the invention of the dynamic pricing algorithm.

For instance, if I want to fly one way from Mallorca to Gatwick on Thursday 31st of October, a popular time for people to leave the island. At the moment, it can cost anywhere between €200 and as high as €400. That’s without any baggage etc. But if I leave it another week, it will cost €67.49.

Looking at the UK, if I want to book the cheapest lodge at Woburn Center Parcs UK for 4 nights between December 23rd and December 27th it will cost £1,699.00. That same lodge from the 6th of January to the 10th of January is £399.00!

I’ve written many times before that it’s time for the UK Government to change their taking children out of school during term time policy. Which would allow Tour Operators, airlines and hotels to drop their prices. Absenteeism is at record levels, according to Department for Education data, with nearly 400,000 penalty notices issued in the 2022-2023 academic year. So what does the Government do? Increases the fines! It’s so blinkered it’s ridiculous. I’ve said this a thousand times, seeing new countries, experiencing new cultures, hearing new languages and tasting different cuisines should be part of a child’s education in my opinion. And it should be in the hands of the parents and teachers to decide if a child could take some time away, not a Government Minister. And I would hope that would enable the Tour Operators, airlines and hotels to price more accordingly, and also it just might solve the so-called tourist overcrowding problems we are seeing around the world. Sorry to keep going on about this, but isn’t it obvious?