The New York Times discusses how Broadway’s The Lion King was able to find success using dynamic pricing. The ticket price flucuates based on demand allowing the 16 year old show to be Broadway’s number i box office performer of 2013. The article shares a little bit about how Disney’s pricing strategy works:
The algorithm, a software tool that draws on ”Lion King” data for 11.5 million audience members so far, recommends prices for five different types of performances—peak dates like Christmas, off-peak dates like a weeknight in February, and periods in between. Ticket demand from mid-March in recent years, for instance, will influence price recommendations for this week. To help keep audience demand strong, Disney has made a highly unusual choice among Broadway hits: limiting ticket prices to a maximum of $227—far less than the top prices for ”The Book of Mormon” ($477), ”Kinky Boots” ($349) and ”Wicked” ($300).
The obvious question is, when will dynamic pricing come to the theme parks. Currently resorts are priced based on demand, but the ticket price at the gate remains consistent. While Disney runs promotions to encourage visitation during the off-season, Disney may consider using a similar pricing algorithm to determine theme park ticket pricing in the future in an effort to balance out demand.