The hottest ticket in town may be "Dr. Seuss's How the Grinch Stole Christmas," where the best seats will set you back $75. Wait, no. It's $95. Nope, $90.
What gives? Children's Theatre Company uses dynamic pricing, which springs from the law of supply and demand. The strategy began with the airline industry, where consumers have had years to get accustomed to the idea that the person next to them probably paid a much different price.
Now, it's spreading to Twin Cities theaters. Ordway Center and Hennepin Theatre Trust use it, as does the smaller Illusion Theater. Moviegoers may have to adjust, as well: Regal Cinemas is testing dynamic pricing at some theaters during the busy holiday season (though apparently not at its Eagan location).
"It all goes back to the concept that, at 7:35, an empty seat is suddenly worth nothing. So, what are the opportunities that exist for pricing shows dynamically, both up and down?" asked Ordway President Jamie Grant, who would like to put a butt in every one of those seats.
Theaters with popular shows and a fixed number of seats can't increase supply, but they can take advantage of a show's popularity by raising the top ticket price. When "Grinch" single tickets went on sale in June, that top price for about 40 primo seats was $75 for the 2 p.m. Saturday matinee Dec. 12. It rose to $90 by Oct. 31, then $95 a week later. Within a few more days, all of the top-price seats were gone.
The highest CTC has gone is $95, for holiday shows. "West Side Story" at the Ordway zoomed to $125 last spring, and some dates for its upcoming "Annie" are already there.
But dynamic pricing isn't just there to annoy patrons willing to pay big bucks to see "Hamilton" on Broadway or the Vikings take on the Packers (the Twins and Vikings both use dynamic pricing, too). It's also a tool to inform buying choices — and steer people to cheaper seats.
"If you're looking for a 'Grinch' ticket and you go to the site, you hit the pricing guide and it will tell you that weeknights are lower than weekends and it will give you a sense of how to find lower-priced seats," said Adam Thurman, CTC's director of marketing and communications.