Demand Management Works

Managing demand and scaling your hall requires a comprehensive strategy that balances revenue, accessibility, and audience experience. Many arts organizations assume that if they just tweak ticket prices based on demand, they’ll maximize revenue. But as we’ve seen in practice, dynamic pricing alone isn’t enough.

Dynamic Pricing: A Useful but Incomplete Tool

Dynamic pricing is a powerful mechanism to optimize revenue, but it must be used in conjunction with other strategies. A common misconception is that increasing ticket prices as demand rises will always yield the best results. However, true demand management considers multiple factors:

• Timing: When is the best time to adjust prices for maximum effect?
• Audience Segmentation: Which patrons respond best to different price points?
• Inventory Strategy: Are you balancing demand across seating sections or just putting every seat on sale?

Client Results:

Building Access: Expanding Opportunity Beyond Price

While pricing plays a role in audience engagement, access is about more than affordability. Expanding equitable access means addressing multiple barriers:

• Marketing and Awareness: Are the right people even aware of the event?
• Ticketing Options: Can audiences buy tickets easily, both online and in person?
• Flexible Pricing Strategies: Are there options for different audience segments?

Scaling a Hall: Managing Capacity for Maximum Impact

Arts organizations often believe that a full house equals success, but effective demand management involves strategic seat inventory planning. High-capacity events don’t always generate the best financial outcomes if tickets aren’t distributed optimally. Key factors include:

• Seating Inventory: Are you reserving the right mix of premium and accessible seating?
• Event Timing: Does demand vary between matinees and evening shows?
• Long-Term Loyalty: Are you maximizing opportunities for repeat attendance?

Client Results:

Conclusion

Demand management works because it takes the bigger picture into account. When pricing strategies are combined with access initiatives and smart inventory management, arts organizations see stronger financial results and deeper audience engagement.

Are you making the most of your demand management strategy? Sprint with us! TRG offers hyper-focus sprints specifically to help you perfect a comprehensive demand management strategy. Let’s talk about how you can optimize your approach for better revenue and audience growth.