The use of dynamic pricing for major concerts — including Green Day earlier this week — could have a “ripple effect” on local Australian gigs and venues, experts have warned. The controversial ticketing method has taken Australia by storm this year, with the sale of Green Day tickets just the latest instance of punters being slapped with soaring prices as high as $500 for seated tickets, leaving fans fuming. Australians got their first taste of the ticketing model in January when tickets to the Men’s Australian Open final shot to $5000, with the Grand Prix sparking similar surge pricing.
Economist and Royal Melbourne Institute of Technology (RMIT) senior lecturer Dr Meg Elkins explained the ticketing method is “surge pricing that increases as demand increases”. “It often means we’re seeing prices increase, and this is where consumers get unhappy – they don’t see that fixed price falling, they’re only seeing it increasing,” Dr Elkins said. However University of Technology Sydney marketing lecturer Dr Nigel Bairstow warned the use of the ticketing model for major events could go further than simply affecting the wallets of patrons, with potential trouble for Australian live music venues and local artists.
“When you’re paying up to $500 for a ticket it can really create a ripple effect on local venues,” Dr Bairstow said. “What you’ll find is it'll just force the closure of a lot of these venues — the venues will have to cut back on live musi.