Why are movie tickets becoming expensive? The entire mathematics of ticket sales in theaters is changing due to the new pricing strategy of multiplexes.

New Delhi . The continuous increase in the prices of film tickets in multiplex theaters across the country is no longer just the effect of inflation. A new business strategy is working behind this, which is called Dynamic Pricing Model. Under this system, the ticket price of any film show does not remain constant, but keeps changing from time to time according to the demand of the audience, availability of seats and speed of booking. This is the reason why there is a difference in ticket prices for the same movie, same screen and at different times of the same day.

In this model, if the seats of a show are filling up rapidly or there is more enthusiasm among the audience about a new and popular film, then the price of the remaining seats is gradually increased. On the other hand, in shows where the number of spectators is less, tickets are made available at relatively lower prices so that more and more people can reach the theatre. Thus, the price of tickets is completely based on the balance of demand and supply.

The concept of dynamic pricing is not new. This model has been in use for a long time in airlines, hotel industry, sports competitions and large entertainment events. Now the multiplex industry is also adopting the same strategy and working towards increasing its income and better utilization of seats. The objective is to maximize revenue as per the capacity of each show and minimize the number of empty seats.

The effect of this system is clearly visible on the audience’s experience. While ticket prices previously remained relatively stable, tickets can now be more expensive than before through advance booking, weekends, holidays and during popular movies. At the same time, there is a possibility of getting relatively cheaper tickets for the shows with less demand or on weekdays. Due to this, it has also become important to choose the right time to buy tickets.

Experts believe that this model helps multiplex operators make better business plans. Additional income can be generated from films that are in high demand, while less popular films can attract audiences by offering discounted tickets. This also helps in increasing the average seat utilization rate of cinemas.

However, viewers have different opinions regarding this new arrangement. Some consider this a normal business process of the market, while many viewers say that rising ticket prices during popular movies are making watching a movie with the family more expensive than before. Especially during weekends and new releases, budgeting for tickets can become a challenge for many people.

In the times to come, it is likely that the multiplex industry will make more extensive use of this model. In such a situation, it can prove to be more profitable for the audience to book tickets by planning in advance. If demand for a show is low, there may be an opportunity to watch the same movie at a relatively lower price. Overall, dynamic pricing has revolutionized the traditional way of selling tickets in theaters and has revolutionized the way the entertainment industry does business.