Increasing use of technology in flexible pricing for Atlanta Symphony and others

Posted on: September 17, 2013

In the Atlanta Journal-Constitution on Sunday (9/15; subscription required), Michael Kanell writes about the ways technology is influencing flexible pricing at a variety of Atlanta-area businesses, including the Atlanta Symphony. “The airlines were the first industry to use technology in this way. Software lets companies make predictions about demand and set prices accordingly. Now, the model is spreading: To hotels, car rentals, cruise lines, grocery stores, theme parks, energy providers and online retail, as well as apartments…. With 200-plus concerts each year, and a city’s worth of entertainment options, there are times the Atlanta Symphony Orchestra has to be creative about filling its 1,748 seat hall, said David Paule, vice president and chief marketing officer.… The orchestra has always charged more for the seats that are in demand. While the ASO doesn’t typically slash prices, it often disperses tickets to discount services like Groupon if sales are sluggish, which can amount to the same thing. ‘I feel like I haven’t done what I need to if there is an empty seat,’ Paule said.… ‘It is ultimately the consumer’s choice, but you do have to lay out the options for them,’ said [Robert] Cross,” who helped Delta Air Lines develop its pricing system and is now CEO of Atlanta-based Revenue Analytics.”

Posted September 17, 2013