The biggest dynamic pricing news this summer was the entry of Michigan football to the dynamic pricing world. We follow the Twitter buzz about various dynamic pricing techniques fairly closely and we are already seeing a significant negative reaction to Michigan’s program. One twitter report states that UMich-ND tickets are already selling for over $500 and another says that because of the dynamic pricing program he will no longer donate to Michigan football. These comments really highlight that dynamic pricing is a double edged sword.
Our view is that the REAL challenge in dynamic pricing is not in maximizing event revenue. The challenge is in balancing event level revenue generation with customer relationship management. This is an often neglected challenge that requires a different type of data and statistical analysis to address.