There’s mounting pressure for the European Commission to scrutinise the concept of demand-based surge pricing, as used by service providers like Ticketmaster. This comes in the wake of the backlash that followed a surge in ticket prices for Oasis’ reunion tour. The price of standard tickets for the highly-anticipated concert more than doubled from the original €86.50 to €415 last weekend, leaving fans in a state of shock.
While Ticketmaster has absolved itself of the price hikes, stating that it does not determine concert ticket prices, there is considerable criticism of the demand-related pricing technique it and other service providers employ. Such practices mirror the variable pricing models used in the aviation and hospitality industry where rates fluctuate based on demand.
A representative from the European Commission has confirmed that as part of a review of EU consumer law regarding digital fairness set to take place this autumn, the use of dynamic pricing is expected to be under scrutiny.
The Oasis concert, marking the first onstage reunion since their public split in 2009, attracted significant attention from fans. However, fans experienced online tribulations, such as website glitches and misidentification as bots, leading to a sell-out within a day, leaving many fans disappointed. The tour, scheduled for next August, will include two performances in Dublin’s Croke Park.
The escalating ticket costs drew criticism from Tánaiste Micheál Martin who labelled the situation as “shocking”. Following the ticket uproar, the UK’s Advertising Standards Authority (ASA) received around 450 complaints about the false claims made by Ticketmaster concerning ticket availability and pricing in their adverts promoting the Oasis concerts.
The ticket pricing is thought to have been determined by promoters such as SJM Concerts, MCD, and DF Concerts & Events.