Guggenheim: Pricing to Meet the Needs of Different Customer Groups
Dec 16, 2024
How do you make prices accessible, while still maintaining a self-reliant and resilient business? In this article, we explore how combining several pricing strategies can create flexibility for accessible prices by doing a deep dive into Guggenheim Bilbao’s pricing strategy. They are not only creative with their art and exhibitions, but also in the way that they use different pricing models.
Preserving Culture While Making It Accessible to a Wide Audience
All companies should derive pricing decisions from general strategic plans. This is what Guggenheim does very well, and creatively.
The mission of Guggenheim is to preserve modern and contemporary art, while making it accessible to a wide range of different audiences. This way, they can contribute to the knowledge and enjoyment of art by ensuring that ticket prices are low enough that a diverse audience is able to enjoy the museum.
Simultaneously, Guggenheim Bilbao aims to maximize the highest degree of self-financing. Ticket prices are only one source of funding. The financing of the museum naturally differs from traditional companies: Guggenheim museums are financed through the Guggenheim Foundation, as well as each country’s individual support. However, during 2024 and 2025, the museum is aiming for maximum self-financing to ensure financial stability.
How does Guggenheim Bilbao align these strategic objectives? Having low ticket prices might mean that self-financing is not maximized, as some visitors might be willing to pay much more for tickets than others.
Creative Pricing Models at Guggenheim Bilbao
To meet these objectives, Guggenheim Bilbao uses several pricing models. In this section, we will outline these models.
To decide the different pricing models to employ, Guggenheim Bilbao has to identify the different customer segments that are of interest to them. The pricing strategy that will fit the needs of a tourist visiting Bilbao once will not fit the needs of an art-lover living near Bilbao. And the premium that an art-lover would pay to visit their favorite museum unlimited times would not suit the needs of a working family that wants to introduce art and culture to their kids on a rainy Saturday. Not to forget, educational groups that require low prices and specific times for their visits.
Dynamic Pricing
Guggenheim Bilbao has a general ticket price of 15€. This general ticket is targeted to customer groups, such as tourists, that want to visit the museum once.
However, during peak demand seasons or special events, they can employ dynamic pricing. In dynamic pricing, the price of one ticket can change based on the supply and demand. In most cases, this means that prices increase as the supply of tickets decreases.
Become a Friend of the Museum
Frequent visitors are encouraged to pay for an annual membership of 40€. For discount groups, such as students, retirees, and families, the membership can be bought even cheaper. Friends of the museum enjoy several perks, such as free visits, discounts, and access without having to wait in line, making it the perfect solution for locals that want to relish the cultural scene more often.
In addition to ensuring that members are incentivized to visit the museum several times each year, the membership also provides an opportunity for creating a sense of community between members. This can further increase customer loyalty.
Pay-What-You-Wish Model
Not all audiences are willing to pay 15€-40€ for visiting an art museum. For a working family that wants to educate their children on art and culture, paying 15€ per person might not be feasible. To encourage inclusivity and make art more accessible regardless of financial situation, Guggenheim Bilbao allows visitors to pay what they wish during certain opening hours, such as Monday and Saturday evenings.
Special Exhibitions
Ticket pricing can vary for special exhibitions, reflecting the value of unique experiences. This helps the museum manage costs, while providing exclusive access to shows.
Educational Programs
The pricing structure often supports educational initiatives and outreach programs, emphasizing the museum's mission to promote art and culture to diverse audiences. The museum considers students’ visits as an opportunity not only for them to learn, but also to socialize and discover through creativity and the inspiration they can get from the exhibitions.
Outcome: Increasing Visitors in 2023
In 2023, the goal of Guggenheim Bilbao was to increase – or at least maintain – the number of visits compared to 2022. In 2023, the museum had over 1.3 million visitors, an increase of 6% from the previous year. In a similar fashion, community members increased by over 75,500 from 2022.
Within 2024 and 2025, Guggenheim Bilbao aims to develop a high-quality Art Program to fit the needs of a diverse audience. In addition, it aims to continue to develop its community memberships, especially strengthening the position of individual memberships, as well as creating customization and differentiation for customer segments.
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