As we have alluded to in class, Broadway theaters have started to recognize the impact of revenue management pricing. Some of the characteristics of the theater (such as fixed capacity, perishable inventory, and variable demand among others) make it an ideal setting to implement differential pricing.

Ideally, each seat in a theater would be priced according to the demand of that seat. However, more practically, rate fences are developed to create variable pricing across broader customer segments just as in other industries that work with revenue management. Students can be priced differently, prices can change depending on how far out the tickets are purchased, tickets can be priced based on weekend/weekday shows. The possibilities are just as extensive in the theater industry as in the hospitality industry.