Managing Crowds with Prices

It is common to control crowds with crowd control barriers, security, and signage, but one method that is often forgotten about is crowd control due to pricing.

It’s a method that is often only implemented by large companies that have already found a loyal audience. This strategy for crowd control is usually only used for one reason, which is that the venue or event is already overcrowded.

Overcrowding causes serious problems for venues and events. First off, it is a safety concern. Too many people can lead to injuries because of jostling, overheating, and more. Secondly, if the crowding is too bad it makes it difficult for emergency responders to get to the people who do need aid. Overcrowding also makes the event or venue unpleasant for customers. It leads to long wait times and difficulty navigating from place to place.

This is why some companies and events attempt to control the crowds with prices, and in some cases it can be very effective. Take a look at Disney as an example. Disneyland recently announced that there will be price increases at their park, along with the elimination of some annual passes with the addition of new ones. The most expensive pass available is the Signature Plus pass, which will cost individuals $1,049 and is valid every day of the year. This is $270 more than the Premium pass cost, which had the same perks before it was eliminated.  Annual passes are often a big contribution to overcrowding. Disney has been forced to take action due to a large overcrowding problem that leads to them closing the gates to new visitors on days when the park reaches capacity, leaving customers unhappy and Disney losing money.

A strategy such as this is not limited only to very large companies such as Disney. This is implemented by all sorts of organizations and events. For example, Anime Central, an anime convention in North America, has started to raise prices as the crowds grow every year. This three day convention is the third largest anime convention in North America, with a reported attendance of over 29,000 in 2014. Years ago, when attendance was between 10,000 and 18,000, badges to the event could be obtained for under $40 if attendees bought early. For the 2016 event the cheapest option is $48, increasing up to $70 the closer to the convention you get. In addition, hotel prices have gone up for the next year as well. It is widely speculated that this is an attempt to keep attendance level instead of increasing further. Anime Central sells out an average of four or more hotels in the area, and with that many people in one place crowds get difficult to manage. For the 2016 convention when the room block for two of the hotels was opened they both sold out in under 12 hours, with one hotel selling out in less than one hour. Unless the convention wishes to put a cap on attendance like Comic Con, the only thing they can do is raise prices to try and keep crowds down.

However, using price increases as a form of crowd control is a delicate balance. There will always be people who are willing to pay the price for a popular event or attraction, but if you raise prices too much at one time you may turn away a lot of other people. If you plan to employ this type of crowd control do so with caution.