As the demand for experiences like travel, movie passes, and concert tickets soars, companies are taking advantage by leaning into ‘dynamic pricing.’
Driving the news: Last weekend, some Cineplex locations charged $1 more for tix to see blockbusters Barbie and Oppenheimer than other older releases, per The Globe and Mail.
- A spokesperson said the practice isn’t new, even though the CEO confirmed last year that premium pricing only reflected premium offerings (like an IMAX screening).
Zoom out: Canadian airlines are also experimenting with applying dynamic pricing methods they already use for tickets (based on demand, routes, and purchase time) to baggage fees.
- While Porter is currently the only Canadian airline that uses dynamic pricing for baggage fees, Flair, Lynx and WestJet use a similar practice called “variable pricing.”
Why it matters: Dynamic pricing could help you save money if you fly during off-peak times or wait months to see a movie, but you’ll have to pay up more if you want in on the action.
- With only so many seats on a movie’s release day or to Rome during summer break, what will likely end up happening is people ponying up more without even realizing it.
Yes, but: It all falls apart when companies raise prices too much, and people get angry. Ticketmaster currently faces a class action lawsuit for allegedly price gouging Drake tickets.
Bottom line: As the practice of dynamic pricing grows, it could also face more backlash.
AMC movie theatres ditched their dynamic pricing scheme for seats after an uproar from movie-goers, and French supermarket Casino ended its scheme for similar reasons.—QH