The Inflation Gap: Why Holding Back on Price Is Costing the Arts Sector

For years, many arts leaders have treated price as fragile. Raise it, and demand might collapse. Hold it steady, and at least audiences will keep coming. But the truth is the opposite: holding back on price is costing the sector far more than incremental increases ever would.

Inflation Didn’t Create the Gap, It Exposed It 

We didn’t suddenly become bad at pricing during the pandemic or the cost-of-living crisis. As Senior Consultant Brad Carlin in the clip below reminds us, our sector struggled to adapt prices even before extraordinary conditions hit.  

Inflation has only magnified the gap between what it costs to produce art and what audiences are paying to see it. Delaying price increases out of fear doesn’t protect audiences; it just ensures sharper, more painful adjustments later. 

The Inflation Gap in Numbers 

Since 2019, demand has generally rebounded across both North America and the UK. In the UK, TRG’s Arts & Culture Benchmark shows 15% more tickets sold and 29% more revenue compared to pre-pandemic levels. In North America, most major genres are now exceeding 2019 revenues, with theatre revenues up by more than 30%. On the surface, the picture looks strong: more audiences, more sales, more income. 

But rising costs tell another story. Inflation has climbed more than 21% since 2019, while average ticket prices have increased by only about 12%. The result: even with higher revenues, the real value of each ticket is lower than it was five years ago. 

Organizations are selling more and doing more, yet still finding that each pound or dollar stretches less. 

The takeaway is clear: holding back on price hasn’t shielded audiences; it has left organizations playing catch-up in a tougher, more expensive world. 

What We’ve Seen at TRG 

Working with clients across the UK, US, and Canada, TRG has seen firsthand that the organizations who have weathered this period best are the ones who embraced pricing discipline; small, intentional increases applied year after year. 

• In the UK, TRG clients grew average ticket prices more consistently than the wider field. Crucially, without losing audience volume. 
• In North America, we’ve seen steady growth in per-capita revenue among TRG clients, often ahead of their peers who may have hesitated. 
• And in every market, the same truth holds: price changes don’t drive demand on their own. Audiences respond to value, access, and engagement, not just the cost of the ticket. 

This isn’t about raising prices recklessly. It’s about managing price as a demand signal and aligning it with the true cost of doing business. The organizations who do this build resilience. Those who delay only face steeper, riskier jumps later. 

What Leaders Need to Do Now 

The real discipline is in closing the gap before it widens: 

• Small, steady moves beat painful leaps. Incremental growth keeps pricing aligned with costs and reduces shocks for audiences. 
• Break the false link between price and demand. Scarcity, access, and perceived value drive demand more than the cost of a ticket. 
• Stop playing catch-up. Every year of hesitation makes the eventual adjustment bigger, harder, and more disruptive. 

Price is not a punishment for your audience. It’s a demand signal, and when managed with intention, it’s one of your most powerful tools for financial resilience. 

Ready to Reframe Your Pricing? 

This is exactly what we unpack in the latest episode of our Leading the Way series. Here are the key takeaways: 

• Pricing is leadership work: the most important financial lever can’t be siloed. 
• Fear is costing you revenue: small, steady adjustments prevent painful “catch-up” jumps. 
• Demand drives price, not the other way around: lowering price is unlikely to stimulate demand, in the same way raising prices doesn't mean that demand is going to drop. 
• Accessibility and revenue can coexist: scaling strategically makes both possible.