Capacity Based Pricing explained in 3 questions

In the leisure industry, finding the sweet spot between demand and capacity is crucial for success. Meet capacity-based pricing—a strategy that harmonizes economics and customer experience. 

Kimberley PrengerWe’ve decided to ask our Revenue Optimization Specialist, Kimberley Prenger about her expert opinion on the topic of capacity based pricing in the leisure industry. And this is what she has to say…


“How would you describe capacity based pricing?”

Kimberley: “Well, the name already says it all. It is pricing based on the capacity. If there are still a lot of tickets that need to be sold, the price will start low, the more tickets get sold, the more we will increase the price. The great thing is that we implemented it in our already powerful real-time-pricing algorithms to make it even more powerful.”


“Capacity Based Pricing is closely linked to our Crowd Control service. In Crowd Control, you can decide the maximum number of tickets you want to sell by defining your maximum capacity.”


“What are the psychological effects driving the success of a capacity based pricing approach?”

Kimberley: “If you transparently implement Capacity Based Pricing, this pricing approach can leverage several psychological effects to drive its success. Of course scarcity is one of the best-known psychological principles coming into play: limiting the number of tickets automatically makes the ticket more desirable. Customers are motivated to act quickly to secure their spot or purchase before the capacity fills up. So, automatically, scarcity creates the principle ‘Urgency’. People are more likely to take action when they feel a need to act quickly to avoid missing out on an opportunity. One other well-known principle is ‘social proof’. Seeing others engaging with the offer can validate its worth and encourage others to follow the example. And the last one I will mention is Fear Of Missing Out (FOMO). People don’t want to miss out on the great deal of all the low prices or could get scared the price will increase even further.”

"These effects have been seen since the early implementation of real-time-pricing. Yet, now, with capacity being taken into account, the impact it has on the visitor price perception is even more powerful. It’s something that we cover in our full guide to dynamic pricing, a must read if you want to get to know more about the basics of dynamic pricing in the leisure industry."


“What is your advice for any leisure park wanting to embrace capacity based pricing?

Kimberley: “Because it’s so powerful it is good to first determine whether implementing such a pricing strategy is in line with your overall business goals. Incorporating capacity-based pricing in your pricing strategy works amazing when you have a venue or event with limited capacity because it optimizes your revenue and conversion rates. Next to this, and not often thought of is increasing your online review scores. If you know the perfect visitor amount in the park for a good customer journey, you can utilize this knowledge in your pricing strategy."

"And lastly it works perfectly for visitor spread during the day when using time slots as it optimizes the pricing during the day and for every time slot. At the end of the day, because of all of this, chances are high that you attract more people to your venue and reach another audience. People who would normally search for cheaper tickets on other websites or could not afford to go at the higher rates are now able to book tickets on your website."


There you have it! Kimberley helped us delve deep into the ins and outs of capacity-based pricing within the leisure industry, unraveling its significance through just three fundamental questions. From optimizing revenue streams to enhancing customer satisfaction and ensuring operational efficiency, it's clear that this pricing strategy holds immense potential for businesses seeking to thrive in a competitive landscape. As we wrap up this insightful discussion, remember to keep these principles in mind as you navigate the dynamic world of leisure and entertainment. 


And news alert… our Convious Dynamic Pricing algorithm now supports Capacity Based Pricing! 

If you are looking for the right pricing for your attraction site or want to get more insights on the topic, feel free to download our full guide to dynamic pricing for the experience economy!

Download the full guide