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

 

 

 

 

21,839 thoughts on “Sports Stadium RM”

  2. بازی انفجار توسط کدهای md5 کدگذاری شده است
    این کد به هیچ عنوان قابل هک کردن نیست اما ما در مقاله آموزش بازی انفجار توانستیم راه حلی را برای رمزگشایی این کد پیدا کنیم

  3. Hello, I think your website might be having browser compatibility issues. When I look at your website in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog! 바카라사이트

  4. Hey, you used to write magnificent, but the last few posts have been kinda boring… I miss your super writings. Past few posts are just a little bit out of track! come on! 파워볼사이트

  5. I’ve learn several excellent stuff here. Definitely worth bookmarking for revisiting. I surprise how so much effort you put to make this sort of magnificent informative web site. 토토사이트

  11. Amazing that you share this informative blog, Really looking forward to read artical like this.

  16. Does anyone remember Spudnuts? They had these really good donuts that were potato based and I can’t seem to find any stores near me. I did find this website called potadonuts.com that seems to be selling potato-based donut mix. Anyone have experience with them?

  30. I love your blog posts, they are resourceful and helpful. Keep it up!

    Meanwhile, I have a great news for every student. We are teaching Our online readers how to be financially buoyant. You guys should check it out.

  42. When create a jingle, make sure it’s appropriate for your niche or sector. Every video on a professional social media channel begins with a personalized jingle!
    The finest jingles for businesses or influencers are basic and brief while yet being distinct and distinctive. Improve your game by creating a jingle that is unique to you. For all of your media outreach, you should have one.

  47. Shower room/Shower enclosure is standard and most frequent used household ,whether it’s framed or frameless shower rooms,the component include tempered glass or laminated glass,hardware,and can be square,curved ,round shape glass. sliding shower door

  48. 相对于遍地开花的乘用车4S店，专业的客车需要不同的选择方法且客车的选购需考虑更多的原则性问题，因轿车相对而言受众是个人的，而客车受众是群体。而今天，小编会根据自身相关的工作经验和学习经验，和大家讲讲选购客车应从哪些方面着手？ 客车

Leave a Reply

Your email address will not be published.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