Ticket Sales and Operation Flashcards
Importance of ticket revenue in pro/intercollegiate sports
For many sport organizations, ticket sales are one of key sources of revenue
Ticket revenue percentages \_\_\_\_\_\_: 50% of total revenue \_\_\_\_\_\_\_ : almost 30% of the total income Major leagues (2019) \_\_\_: 22% \_\_\_: 32% \_\_\_: 37% \_\_\_: 42%
Minor league baseball : 50% DI intercollegiate athletics : 30% NFL: 22% NBA: 32% MLB: 37% NHL: 42%
What tickets are motivated by the control and data it provides?
digital tickets
Type of ticket sale that grows every year
Online
Ticket trend - move to _____
mobile/digital tickets
Which one would be received better?
A series of small incremental increases vs a single major increase
tolerance zone
To find out
Focus groups/detailed interview with corp. executives
Mail surveys & telephone interview with season ticket holders
tolerance zone
price sensitivity is related to
price elasticity
Different prices are charged depending on some factors
Prices are different based on variables (e.g., the time of day/season, opponent, seat location) to either increase demand at off-peak or to maximize revenue during peak-use times
variable pricing
Adjust prices in real time to match fluctuation in consumer demand
dynamic pricing
difference between dynamic and variable ticket pricing
dynamic has the added ability for ticket prices to change by demand in real time
what is the purpose of DTP
maximize revenue
concern of using DTP
not offending season ticket holders by selling tickets cheaper than what they bought
-Who are your customers?
Income level /disposable income / what they can afford
-How much the similar event is priced.
-Does the event depend on ticket revenue?
How much revenue need to be generated from tickets?
-Will there be pricing sensitivity (Price elasticity)?
-What is the perceived value?
Don’t overprice
Let consumers know what they would get from purchasing ticket
-Tolerance zone
In deciding to sell tickets, what things should be considered?
