Boom Goes the Astros' Dynamic Pricing Model: Get Ready to Shell Out the Big Bucks
Are you an Astros fan? Do you love going to Opening Day? Do you have a good credit score? Well, if you want to attend this Opening Day against the Texas Rangers, you better have a fantastic credit score because you're going to need to get a bank loan to buy a ticket.
The new Astros logo
The Astros have more than doubled prices for Opening Day, with the price of dugout seats, normally $56, going for $130. And you better get used to higher-than-face-value prices, because the prices for games this season against the New York Yankees, Boston Red Sox and Los Angeles Angels of Anaheim will also be higher than normal.
The Astros are able to do this, they claim, because of a tremendous demand for tickets to Astros baseball games, especially that Opening Day game. And because there's supposedly a huge demand for tickets, the Astros state that they can raise the cost of the ticket to whatever in the hell they want to charge because you, the fan, are a sucker who will pay anything they demand you pay for the right to watch the worst team in baseball get its ass kicked.
Here's what was said in yesterday's Houston Chronicle (stuck behind a paywall):
But Astros president George Postolos said Thursday prices for the Astros-Rangers opener on March 31 are simply a reflection of demand and the club's increased emphasis on dynamic pricing, which will be used more often in 2013 and in all areas of the stadium for the first time. The Astros' 2013 home-opener and AL debut is also MLB's season-opener. Thus, the March 31 high ticket costs are an anomaly.
Here's a note for Brian T. Smith at the Chronicle: If the prices are going to be hiked due to so-called dynamic pricing multiple times, and if the team's telling you in advance when the prices will be hiked, then the high ticket costs aren't an anomaly. Something can't be a departure from the normal if it's a common occurrence, and this season, it's going to be a common occurrence.
And here's a note for George Postolos and the Houston Astros: Dynamic pricing is supposed to be driven by the demand for tickets. The more demand there is, the more the tickets should cost. The less the demand, the cheaper the ticket. But single-game tickets for the Astros have yet to go on sale, so how can there be a market-priced demand when there's not yet a market to set the price?