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

 

 

 

 

13,329 thoughts on “Sports Stadium RM”

  4. KingBook provides online cricket ID and attractive offers for brand-new users in addition to cricket ID for various online games. We have the largest and most trusted online cricket ID provider in India and we are among the largest cricket ID providers. KingBook provides a vast array of sporting activities to offer you the most effective cricket experience. You can check our exchanges to bet on any bookmaker ID: We are the earliest and most trusted online legal online cricket ID provider. We give online cricket ID with 24/7 customer support. A reliable cricket betting operator in India can help you earn money from your hobby. We have selected among the best legit and reliable on the internet cricket betting companies with 100% warranty of sincerity, safety and security.

    https://kingcricbuzz.com/

  7. Good to become visiting your weblog again, it has been months for me. Nicely this article that i’ve been waited for so long. I will need this post to total my assignment in the college, and it has exact same topic together with your write-up. Thanks, good share. samehadaku

  8. Thank you, I’ve just been searching for information about this topic for a while and yours is the greatest I’ve discovered till now. But, what in regards to the conclusion? Are you sure concerning the supply? Skrota bil Kungälv

  10. Nulls Brawl Apk is like a unique playground for Brawl Stars, where players can try out new stuff and make their own rules. It’s fun to play with, but some people wonder if it’s fair or if it’s okay with the game makers. It shows how players want more say in their games and makes us think about the rules of gaming.

  11. Nulls Brawl APK is like a unique playground for Brawl Stars where players can try out new stuff and make their own rules. It’s fun to play with, but some people wonder if it’s fair or if it’s okay with the game makers. It shows how players want more say in their games and makes us think about the rules of gaming.

  15. 그것은 완전히 흥미로운 블로그 게시입니다. 저는 종종 Diwali Bumper Lottery에 대한 내 프로젝트의 도움을 위해 귀하의 게시물을 방문하고 귀하의 슈퍼 쓰기 기능은 진정으로 나를 깜짝 놀라게했습니다. 첫충사이트

  18. The construction of a 65million pound bio-energy plant has ensured a jobs boost in Scotland. The plant, which is being built at the Diageo Scotland’s Cameronbridge Distillery site in Fife, will create 20 long-term jobs and 100 construction jobs during the three-year building phase. Free WAEC expo WhatsApp group link

  19. Good to become visiting your weblog again, it has been months for me. Nicely this article that i’ve been waited for so long.

  20. Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include. peardeck join

  22. MD Cleaning Services offers top-notch cleaning solutions tailored to your needs. Whether residential or commercial, our meticulous approach ensures spotless spaces every time. Trust us for a pristine environment that reflects professionalism and care.

    #To know about more visit our website: https://betweencleaning.com/

  25. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work… 토토사이트

  26. Wow! Such an amazing and helpful post this is. I really really love it. It’s so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also Koitoto

  27. Journey in searching new experience of playing online game and great vibe, harta8899 come in fresh looks and appearances with various game that you could choose from our fancy list. harta8899

  28. 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 134.209.97.244

Leave a Reply

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