True dynamic pricing means daily admission can start at variety of levels and go up OR down. Instead of offering a single general admission price for all days at, say, $20.00, dynamic pricing can give potential visitors a range of alternatives to choose from perhaps as low as $10.00 to as high as $30.00. This change in pricing strategy allows value-conscious customers to purchase admission at what they feel is a good price, and at the same time shifts their attendance from peak to off-peak periods. For the attraction this means that slow days become less slow, bringing in more revenue – even at lower prices.
This approach also has consequences for peak periods. While the admission price will be higher for the peak days, the resulting decrease in attendance has a positive effect. Smaller crowds mean more satisfied visitors. As lines get shorter, wait times decrease and guests’ value perception of the attraction increases as time spent having fun increases and “hurry up and wait” frustration decreases. Of course, attendees may have paid a little more for attending during a peak period, but they end up getting more for their money because the attraction is not as crowded, giving them access to all the attraction has to offer.
At Digonex we’ve seen this in practice with our clients and want other attractions to realize that, yes, dynamic pricing may increase prices for peak periods, but for every higher-priced day there may be multiple lower-priced days offered to visitors, thus adding value and accessibility to the attraction for price-sensitive guests.