Imagine you’re about to register for an international event. Your budget is tight, but you still want to take the chance.
But when it’s time to pay, there’s a catch: the event charges in dollars.
Depending on the exchange rate, your costs could increase fivefold! You’d probably think twice before joining, right?
To change that reality, many international event organizers apply Purchasing Power Parity.
This is a tool that can adjust ticket prices according to the buyer’s country.
This way, international events can become more accessible and increase the number of registrations.
Have you thought about doing this for your event? Learn more about:
- What is Purchasing Power Parity?
- How does Purchasing Power Parity work?
- How to apply Purchasing Power Parity to international events?
What Is Purchasing Power Parity?
Purchasing Power Parity (PPP) is a metric that compares the purchasing power of various currencies against the US dollar.
In practice, it measures the amount of goods and services a given amount of money can buy in different countries. This way, it defines the local cost of living.
With this approach, it’s possible to determine what the real value of a product or service would be according to each country’s reality.
For example, an international event is selling tickets for 50 dollars. Obviously, that amount may be reasonable for someone in the United States.
But once converted, it can become unaffordable for a Brazilian or people from other countries with lower purchasing power.
In this context, Purchasing Power Parity would adjust the ticket price according to the cost of living in the attendee’s country.
In practice, this can be done at the moment of purchase, using technology that identifies the attendee’s location.
In Brazil, Purchasing Power Parity is available on only one event platform: Even3. Let me explain how it works!
How Does Purchasing Power Parity Work?
In short, the Purchasing Power Parity calculation compares the prices of the same product or service across different countries.
The goal is to define each region’s purchasing power in order to price items fairly.
In practice, the calculation works like this:
How to Calculate Purchasing Power Parity?
First, the price of a product in dollars is divided by the price of the same product in local currency. Then, the result is multiplied by the real exchange rate.
This is all done to determine the difference in purchasing power between countries.
From there, it’s possible to define the ideal discount so that your event’s ticket costs an equivalent amount in both countries.
This way, PPP makes it possible to price items more fairly.
But you don’t need to add each discount manually to your event! That’s because there’s now technology that can help you.
How to Apply Purchasing Power Parity to International Events
As mentioned, there’s no need to make manual adjustments for international events, like creating specific tickets for each country.
After all, how would you even guarantee that buyers are really in that location?
With that in mind, Even3 developed Purchasing Power Parity technology built specifically for events.
The event platform is responsible for bringing this technology to Brazil.
Today, it can be applied to any event in the world organized through Even3. Here’s how it works:
How Does Purchasing Power Parity Work on Even3?
Even3 has a “Purchasing Parity” module built specifically for international events.
When enabled, the system sets up discount coupons based on the World Bank’s country groupings.
This way, when a user accesses the event page, the system identifies their country of origin by IP and automatically applies the appropriate discount.
But the system is secure! The technology can detect users who use VPNs to change their location and blocks the discount in those cases.
This way, the technology automatically helps you keep your event secure, without relying on human checks that could fail.
Beyond that, this feature opens a new era for international events.
Now it’s possible to create international congresses, global fairs, and worldwide meetings with fairer prices for everyone.
By factoring in PPP, you make sure your event reaches a wider audience and increase your revenue potential.
So, how about making your international events more inclusive? Discover Even3’s solutions today.
