I was pleasantly surprised this past weekend to see NBC News devote a little time into reporting about the use of dynamic pricing by zoos and museums. I would typically expect them to report on dynamic pricing used for large stadiums and festivals so I was happy to see them spending time exploring how exhibit based arts and cultural entities are approaching pricing.
As you might expect, prices aren’t as high if you commit well in advance of the date you wish to visit. Some of the software helping these organizations make pricing decisions are also factoring in weather and Google searches alongside actual purchase patterns, capacity, time of day, day of the week, etc.
Museum industry groups laud this as a win-win for everyone, but customer perception may be a little different:
Data-driven pricing can be “a financial win for both the public and the museum,” said Elizabeth Merritt, vice president of strategic foresight at the American Alliance of Museums. It can reduce overcrowding, she said, while steering budget-minded guests toward dates that are both cheaper and less busy.
But steeper prices during peak periods and for short-notice visits could rankle guests — who may see anything less than a top-notch experience as a rip-off, said Stephen Pratt, a professor at the University of Central Florida’s Rosen College of Hospitality Management who studies tourism.
Research by IMPACTS Experience that I wrote about in March presented survey results that support the claim consumers have higher expectations of their ticket buying experience at exhibit based organizations. In particular, consumers didn’t want to commit that far in advance out of concern someone might get sick or a scheduling conflict might arise.
Pricing confusion of the type mentioned in the NBC News piece was also mentioned–both in terms of not knowing what rate was applicable when and not being able to easily compare a desired date with surrounding dates to determine if visiting on another day of the week might be much cheaper.
The NBC News article mentioned that many museums offer a plethora of discount categories alongside their full price. I suspect that may add to the pricing confusion that was noted as a barrier in the IMPACTS data. I also wondered if these organizations were undermining all their dynamic pricing efforts by offering so many discount categories.
