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

 

 

 

 

19,741 thoughts on “Sports Stadium RM”

  4. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more home cleaning new york 中文補習 小學

  5. Your article offered deep insights and was skillfully written! I found it very engaging. Keep up the excellent work!
    You May Also Visit My Website!
    YYY777

  6. “Ahaa, its fastidious conversation about this article at this place
    at this blog, I have read all that, so at this time me also commenting here.” 머니맨

  7. “Great post. I was checking constantly this blog and I’m impressed!
    Very useful info particularly the last part 🙂 I care for such information much.
    I was looking for this particular info for a very long time.
    Thank you and good luck.” 토토사이트

  8. dream cakes in Dubai are not just confectionary delights but culinary masterpieces that epitomize luxury and creativity. As the epitome of extravagance in the realm of desserts, Dream Cakes redefine the boundaries of imagination and taste. Crafted with meticulous attention to detail, these cakes transcend the ordinary, becoming symbols of celebration and opulence in Dubai’s vibrant culinary scene.

  10. Whenever I have some free time, I visit blogs to get some useful info. Today, I found your blog with the help of Google ; I found it one of the most informative blog 토토사이트

  11. Employees Injured at Work Have a Claim against Their Employer for Workers Compensation. After Being in the Worst Accident of My Life, Zach Was the Right Attorney for Me. Read Blog. View Practice Areas. See Directions. Types: Bicycle Accidents, Pedestrian Accident Lawyers In Barbour County, Alabama

  14. Best Cake Shop In Dubai, known for its extravagant lifestyle and culinary delights, boasts an array of cake shops that cater to every sweet tooth’s desire. Among these, one stands out as the epitome of indulgence and excellence – the Best Cake Shop in Dubai. Nestled amidst the bustling streets of this cosmopolitan city, this confectionery haven is a treasure trove for cake enthusiasts seeking a symphony of flavors and impeccable craftsmanship.

  15. Muuns’ online cake delivery in Dubai a leading provider of exquisite cakes, has revolutionized the cake delivery experience in Dubai with its seamless online platform. With just a few clicks, customers can indulge in the delectable delights crafted by Muuns’ masterful bakers and have them delivered straight to their doorstep. This convenient service has elevated the dessert game in Dubai, offering a hassle-free solution for those craving a sweet treat without the hassle of visiting a bakery.

  23. A pod device is a type of electronic cigarette or vaping device that uses replaceable or refillable pods or cartridges containing e-liquid. These devices are popular among people looking for a convenient and easy-to-use vaping experience.

  32. 최근 귀하의 웹 사이트, 특히이 블로그 페이지에서 유용한 정보를 많이 발견했습니다. 기사에 대한 많은 댓글 중. 공유해 주셔서 감사합니다. 바카라사이트

  37. Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards 메이저사이트

  46. I think this is one of the most significant information for me. And i’m glad reading your article. But should remark on some general things, The web site style is perfect, the articles is really great : D. Good job, cheers 카지노사이트

Leave a Reply

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