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

 

 

 

 

13,327 thoughts on “Sports Stadium RM”

  3. Succeed! It could be one of the most useful blogs we have ever come across on the subject. Excellent info! I’m also an expert in this topic so I can understand your effort very well. Thanks for the huge help. 求婚 戒指

  11. Thanks for the nice blog. It was very useful for me. Keep sharing such ideas in the future as well. This was actually what I was looking for, and I am glad to came here! Thanks for sharing the such information with us 에볼루션카지노

  12. Join the Botogon trading community to engage with like-minded traders, share insights, and collaborate on strategies to enhance your trading journey. Whether … forex robot

  13. The Hellstar Shirt is more than just a piece of clothing, it’s a statement. The brand draws inspiration from punk and rock culture, and it is reflected in its designs. The Hellstar shirts are characterized by bold graphics, dark colors, and a touch of rebellion. Every design has a story behind it, making it more than just a fashion statement. From skulls to demons, the designs are not for the faint-hearted. But that’s what makes the Hellstar T shirt stand out from the rest.

  14. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don’t forget, keep sharing useful info: crop tops for bride

  16. You might comment on the order system of the blog. You should chat it’s splendid. Your blog audit would swell up your visitors. I was very pleased to find this site.I wanted to thank you for this great read!! top seo boost

  17. You might comment on the order system of the blog. You should chat it’s splendid. Your blog audit would swell up your visitors. I was very pleased to find this site.I wanted to thank you for this great read!! cheap maltese

  18. I am still learning of your stuff, and i am attempting to achieve my objectives. I completely adore reading through all that is written in your website. Maintain the actual ideas arriving for long term ! Thanks ! 에볼루션카지노 가입

  19. You might comment on the order system of the blog. You should chat it’s splendid. Your blog audit would swell up your visitors. I was very pleased to find this site.I wanted to thank you for this great read!! Paloma

  20. Really impressed! Everything is very open and very clear clarification of issues. It contains truly facts. Your website is very valuable. Thanks for sharing. hbomax/tvsignin

  22. ALEXISTOGEL merupakan platform bandar togel dengan diskon terbesar di Indonesia, yang menawarkan beragam permainan togel online resmi yang sangat diminati oleh para penggemar togel. Dengan hanya menggunakan satu akun, Anda dapat mengakses layanan permainan togel online yang lengkap. login alexistogel

  23. ALEXISTOGEL merupakan platform bandar togel diskon terbesar di Indonesia, menawarkan beragam permainan togel online resmi yang sangat diminati oleh para penggemar togel. Kami menyediakan layanan permainan togel online terlengkap dalam satu akun.

  24. local chat lines & Free Local Chat Lines are great for many reasons. They’re like traveling through a magic portal that takes you back to your own people. This doesn’t mean that participation in local chat rooms is limited to people who live abroad. You don’t have to miss your community to be a part of community chat rooms. In fact, you can become a part of local chat rooms for singles, local chat rooms for gays or local online chat rooms of any category even if you still live in that locality.

  25. ALEXISTOGEL merupakan platform bandar togel dengan diskon terbesar di Indonesia, menyediakan beragam pilihan permainan togel online resmi yang sangat diminati oleh para penggemar togel. Dalam satu akun, Anda dapat menikmati layanan permainan togel online yang lengkap. alexistogel

  26. The Florida Lottery is a state-operated organization responsible for overseeing various lottery games and scratch-off tickets within the state of Florida. It offers a wide range of games, including multi-state jackpot games like Powerball and Mega Millions, as well as in-state games like Pick 3, Pick 4, Fantasy 5, and Cash4Life.

    Players can participate in daily drawings or purchase tickets for weekly jackpot games, with the opportunity to win substantial cash prizes. Additionally, the Florida Lottery contributes a portion of its proceeds to support education and other public initiatives in the state.

    With its array of games and opportunities to win, the Florida Lottery provides entertainment and excitement for residents and visitors alike, while also benefiting important causes within the state.

  28. The Florida Mega Millions Lottery is a popular multi-state lottery game offered by the Florida Lottery in collaboration with other participating states. It provides players with the chance to win significant cash prizes.

    In the Mega Millions game, players select five numbers from a pool of 1 to 70, as well as a Mega Ball number from a separate pool of 1 to 25. To win the jackpot, players must match all five main numbers and the Mega Ball number. There are also smaller prizes for matching fewer numbers.

    Drawings for Mega Millions are held twice a week, on Tuesdays and Fridays. Players can purchase tickets until shortly before each drawing. The jackpot prize starts at $40 million and increases with each rollover until it is won.

    The Florida Mega Millions lottery offers players the chance to win substantial prizes through its multi-state jackpot game. It adds excitement to the Florida Lottery lineup and provides another opportunity for players to win life-changing cash prizes twice a week.

  46. No doubt this is an excellent post I got a lot of knowledge after reading good luck. Theme of blog is excellent there is almost everything to read, Brilliant post. superman68

  50. Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. superman68

Leave a Reply

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