Article originally written for and published by M&IT

Following this weekend’s Oasis ticket chaos, events are back in the mainstream media this week. Dynamic ticket pricing is nothing new to event organisers, many of whom use dynamic pricing models for their exhibitor stands and sponsor packages, adjusting costs for prime locations, corner charges, and early bird rates.

But how do these models impact the exhibitor and sponsor customer journey? And is there a method of deploying dynamic pricing that doesn’t leave anyone feeling short-changed?

Adam Jones, CEO of FFAIR, explores how B2B event organisers can implement this pricing model to maximise revenue without leaving exhibitors or sponsors with a bitter taste.

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This weekend, the joy surrounding the Oasis Reunion Tour has turned sour, with so much drama that it has ignited a government investigation. To add to this, the additional costs of attending an Oasis gig are already causing some outrage with The Guardian reporting that “in Edinburgh alone, a Holiday Inn Express room next August for the first two nights of their Murrayfield shows will now cost £1,300 due to anticipated demand.”

Gig-goers who might have paid £355+ for a ticket, may not have yet calculated how expensive travel, food, and drinks will be, which for some out-of-towners could push the cost of attending the concert into the thousands. For superfans, this is a no-brainer; for everyone else, the expectation for a return on experience is huge.

Although this is a gig and not a B2B event, the online vitriol is enough to make event teams fear a backlash over the implementation of dynamic pricing and other new pricing models to generate revenue this Autumn. During my 20-year event career, I’ve supported many event teams through transitions in pricing models, but more than that, I’ve been on the other side as an exhibitor myself (this year, FFAIR will exhibit at at least three industry exhibitions). Adopting dynamic pricing can be rewarding for both the event organiser and the exhibitor if it is delivered with time, care, and clear communication.

One of the key elements to remember is that the cost of an event for exhibitors and sponsors isn’t just what they spend with you. Exhibitors will also need to budget for hotels, subsistence, catering, Wi-Fi, signage, electrics, etc., to participate. While these costs aren’t invoiced directly to the event organiser, they still impact the exhibiting company’s budget. All of these suppliers have their own dynamic pricing models—for instance, hotels operate an in-demand pricing model, and event suppliers offer early-bird booking. Many organisers remain in the dark about these costs and can therefore not get the full picture of what participating in their own event actually means for exhibitors. 

Having transparency over your exhibitors' total event spend will provide you, as an organiser, better data to understand the impact of the average exhibiting company’s expenditure at your event. This insight allows you to make smarter strategic decisions around your own event pricing. It will also enable you to have better conversations with your event suppliers and build better relationships with those companies operating within your event ecosystem. 

Having an understanding of how your suppliers interact with your clients and the overall breakdown of their participation costs will also allow you to better appreciate how changing prices could impact the overall expectation of return on investment for your event. If a new corner charge or premium pricing has resulted in their preferred stand location increasing by, say, 15%, at a time when electrics and wifi costs have also increased, this could be a red flag to a potential issue in overall exhibitor investment and expectation of return on investment. 

Remember, any increase in spend will in turn increase an expectation of an improved event experience. Your exhibitors and sponsorship will ultimately expect more from the event in terms of meeting their business objectives.

Exhibitor experience is key here. So much conversation is around attendee experience, with little attention given to the exhibitors and sponsors. Exhibiting is hard work and, in many cases, incredibly time-consuming, both of which costs the exhibiting company money. It’s worth noting that many exhibitors and sponsors allocate the ‘time’ resource against the overall investment cost. If exhibiting at your event is both costly and time-consuming, the expectation for your event to deliver on their exhibiting goals can exponentially grow beyond what you’re able to deliver. Having a formalised exhibitor customer journey in place is essential for addressing the time investment required from an exhibitor. Simplify the exhibitor process by reducing email bombardment and making key information available in the most accessible form possible (e.g., not a 300-page PDF exhibitor manual). If you’re planning to increase your pricing in the coming year, investing in a robust customer success journey for exhibitors will go a long way in building the early foundations of a long-term relationship.

In the case of the Gallaghers, it seems that from the outset, the lack of transparency has been a core issue, with fans not finding out until they had already invested hours of time (and hope) that the advertised ticket price had escalated due to demand. The lack of clarity and options can quickly turn even the most supportive fan into a detractor. It’s important for event organisers to recognise the power of clear communication when implementing a new pricing model. Have data to back up any specific add-ons or charges, such as visitor traffic in premium locations for example. There are many platforms on the market that can help you measure footfall and visitor attention accurately. Platforms such as Sitka, can provide your event team with visitor footfall and detailed heatmaps.

Ensure exhibitors and sponsors have time to digest the change and don’t feel hostage to your event brand. Anticipate a degree of animosity to the change and prepare the event team on how to handle any negativity. Look to drum up excitement about your event brand and make them feel as if they are a valued customer. Be armed with details of how you’re going to bring value to the event, new features and your greater investment into the industry you serve. 

Ultimately, exhibitors just want to feel like valued customers. They want to be seen and heard by your event team and enjoy working with your event team. By making the exhibitor experience easier, giving them options and choice and being transparent, all goes a long way into helping your event ‘Live Forever’. (Sorry I couldn’t help it!)

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Find out how event organisers are improving their exhibitor experience and streamlining their exhibitor management with FFAIR's online exhibitor manual and ecommerce Shop.