by

Sports Stadium RM

Revenue management of sports stadiums are rather challenging due to several obvious reasons. Events/games are only held once a week, once a month, or even just couple times per year depending on the location and the functionality of the stadiums, which is why it is very important to implement sophisticated pricing strategies in order to maximize revenue on the days when events are held. Also, major sports teams’ stadiums are rarely rented out for purposes other than its own sports games (i.e. basketball, baseball, soccer…etc). Whereas other stadiums are used for various events such as music concerts and award ceremonies from time to time.

There are significant differences between RM of sports stadiums compared to the more traditional sectors such as the airline industry. Whether you sit in the 10th row or the 20th row in Economy have minimal difference (there are, of course, differences between Economy and Business class). However, whether or not you sit in the far back row with limited view to the sports ground creates a world of difference to your overall experience when watching a sports game. Flying on a plane may be a part of your necessity to travel from A to B, but watching a sports game in a stadium is about the “experience,” and therefore the perceived value depending on the location of the seats vary immensely.

Implicit Use of Space

How are the space divided in sports stadiums?

    • By location of seats
    • Regular seats vs. Enclosed suites with multiple seats
    • By supporting team

Club-level seats

What are the common sources of additional revenue?

  • Souvenir shops selling team-specific sports gears
  • Most of the premier league soccer teams’ stadiums have museums and tours: visitors even come to the museum on non-game days as well. High numbers of tourists visit the museums in Western European countries
  • Dining places (concessions)
  • By renting the space for music concerts-picture (per event)
  • By holding other sports events (i.e. Olympics)
  • Media access charges
  • Advertisement

Chelsea Megastore within Stamford Bridge stadium

Chelsea Museum located within Stamford Bridge stadium

Sports stadium being utilized as a concert venue

 

How can companies split up the space differently?

 

  • “Quiet” vs. “Loud” seats: I noticed that some sports supporters prefer to sit throughout the game whereas some people like to stand and cheer actively for their teams. Setting aside few rows in each section to those more reserved supports may be effective.
  • Create more seat classes: frequent visitors (fans) are likely to be less sensitive to the ticket price, so companies can create more club seats (even create another class between the club seats) and add more varied classes depending on the location and the view from the seats.

Implicit Use of Time

How can companies sell the space explicitly?

  • Selling tickets with time limits: This strategy can be very attractive for tourists visiting well-known stadiums or important games such as the World Cup. It would work quite well especially for soccer games. For example, customers will buy tickets for the first-half or and second-half o f the game which will be 45 minutes each. If the full-time ticket is $80, companies can charge $50 for customers purchasing 45-minute tickets.
  • Companies can sell a specific seat at a certain stadium by year, month, or season (leasing private seats)

Price

What are the physical rate fences in sports stadiums? 

  • Location of the seat: proximity or the angle of the view to the sports ground
  • Rates for suites differ based on the physical size of the space (maximum capacity): http://www.executiveclub.manutd.com/en.aspx (You’ll notice that almost all executive suites are sold out for this season despite the high rates)

What some of the non-physical rate fences?

  • Purchases of tickets via third party sellers: http://www.worldticketshop.com/tickets/chelsea_tickets
  • On-line vs. Ticket office purchases
  • Club Membership status
  • Season ticket holders
  • Importance of events: For example, the average seat price for premier league games are more expensive compared to championship league games
  • Performance of the teams
  • Stadium’s location (accessibility) and the age of the facilities

How can companies generate additional revenue by using creative rate fences?

  • Implement bundle selling: price per seat would be more expensive when purchasing one ticket compared to purchasing two or more tickets
  • Early reservations should be entitled to discounts
  • I believe that companies can start utilizing extensive Customer Relations Management (CRM) in the sports industry by using the personal data gained via increase in on-line ticket purchases and use direct marketing. Companies should implement other rate fences possibly based on the different personalities and characteristics of the customers.
  • Companies can upsell those customers reserving suites by offering extensive catering options & extended time before and after the game for extra fee (most stadiums offer the suites per event currently)
  • When the time gets closer to the actual day of the game, odd 1 seats that are left in between other reservations can be sold at more friendly rate

 

 

 

 

13,901 thoughts on “Sports Stadium RM”

  18. I am very enjoyed for this blog. Its an informative topic. It help me very much to solve some problems. Its opportunity are so fantastic and working style so speedy. whatsapp gb

  26. ” ‘훌륭한 유용한 리소스를 무료로 제공하는 가격을 알 수있는 웹 사이트를 보는 것이 좋습니다. 귀하의 게시물을 읽는 것이 정말 마음에 들었습니다. 감사합니다! 훌륭한 읽기, 긍정적 인 사이트,이 게시물에 대한 정보를 어디서 얻었습니까? 지금 귀하의 웹 사이트에서 몇 가지 기사를 읽었으며 귀하의 스타일이 정말 마음에 듭니다. 백만명에게 감사하고 효과적인 작업을 계속하십시오. 토토커뮤니티

  27. 이러한 유형의 주제를 검색하는 거의 모든 사람들에게 도움이되기를 바랍니다. 저는이 웹 사이트가 그러한 주제에 가장 적합하다고 생각합니다. 좋은 작품과 기사의 품질. 먹튀사이트

  29. Your work here on this blog has been top notch from day 1. You’ve been continously providing amazing articles for us all to read and I just hope that you keep it going on in the future as well. Cheers!
    lightbox

  30. A basic bookmarking apparatus that makes it simple to spare, sort out and share your preferred website pages. Access your bookmarks from any PC, telephone or tablet. Listango deals with all advanced internet browsers… 開公司

  33. “초기 당신은 멋진 블로그를 얻었습니다. 나는 결심에 더하기 균일 한 분을 포함합니다. 나는 당신이 정말로 매우 기능적인 문제를 가지고 있다고 생각합니다. 나는 항상 당신의 블로그 축복을 확인하고 있습니다. 먹튀검증

  41. Embark on an unforgettable journey through the heart of Africa with our meticulously crafted Kenya Tanzania safari packages. Immerse yourself in the breathtaking landscapes, diverse wildlife, and rich cultures that these two East African gems have to offer. From the iconic savannas of the Maasai Mara to the vast plains of the Serengeti, each moment promises unparalleled adventure and discovery.

  42. Experience the warmth of African hospitality and immerse yourself in the rich cultural tapestry o f Safaris in Kenya and Tanzaniai adventure. Engage with local Maasai tribes in Kenya, known for their vibrant traditions and colorful attire, and gain insight into their ancient way of life. In Tanzania, encounter the semi-nomadic Datoga people, renowned for their craftsmanship and unique cultural practices.

Leave a Reply

Your email address will not be published. Required fields are marked *