Data by http://SeatGeek.com
I just read Marc Berman's (the NY Post's authority on all things NY KNICKS and TENNIS—Twitter) story over at NYPOST.com titled "Knicks, Nets ticket prices Heat up." In the article he discusses the Knicks' new variable pricing model along with some specific examples of where games have been marked up, against the Heat for example. I was pretty surprised by the almost four-times markup for the "Heat vs. Knicks" game on the primary market due to variable pricing. I cross-checked this against secondary market pricing to see if the markups were in line. Results below:
- Even for the cheapest section in the stadium (400 level), dynamic ticket pricing for the Heat raises prices by almost $100 on the primary market.
- Average Knicks prices on the secondary ticket market for all sections combined are almost $248 more expensive when the Heat are in town, as compared to the Hawks.
- The percentage difference for "Heat vs. Knicks" tickets compared to "Hawks vs. Knicks" tickets is significant: 275 percent for 400 level tickets and 236 percent more for the Lower Bowl on the primary market.
- Although many factors could be at play, I was surprised that the New York Knicks' early test of dynamic ticket pricing was very much in line with fans' willingness to pay on the secondary ticket market.
- An MSG representative was quoted on NYPOST.com saying, "We're trying to figure out what works and what doesn't. It's not an exact science." It looks like they might have gotten it right in this case.
- Price increases are high across the board, but you will notice that dynamic ticket pricing is raising prices significantly higher for 400 Level tickets as compared to Lower Bowl tickets—this surprised me because to take it back to Econ. 101, I would expect the 400 Level demographic to be more price elastic.
This article originally appeared on the SeatGeek Blog - Miami Heating Up Knicks Ticket Prices To More Than $300