Dynamic Ticket Pricing

Only available on StudyMode
  • Download(s) : 66
  • Published : March 4, 2013
Open Document
Text Preview
Table of Contents
1. Executive Summary (p. 2)
2. Dynamic Ticket Pricing Overview (p. )
3. Braves Opportunity (p. )
4. Marketing Objective and Strategy (p. )
5. Expanding Dynamic Ticket Pricing in Turner Field (p. ) 6. Educating Fans on Dynamic Ticket Pricing (p. )
7. Tactics (p. )
8. Budget (p. )
9. Conclusion (p. )
10. Appendix (p. )

Executive Summary
The number of Major League Baseball teams utilizing dynamic ticket pricing (DTP) has grown significantly over the last several seasons. The pricing model allows teams to used advanced software that captures the true value of a game ticket in real-time based on a variety of changing factors. While many teams have chosen to dynamically price their entire stadium, the Atlanta Braves implemented the model in 2012 on a trial basis, only dynamically pricing the Outfield Pavilion section. Based on primary market research data, MLB fans seem to be somewhat suspicious of the new model and its benefits. In this paper we will explain why the Braves should expand to all seats using DTP and an approach to educating fans to the benefits of this method of ticket sales. Background

Dynamic Ticket Pricing
Major League Baseball season is a six-month, 162 game marathon, during which a variety of factors, such as team performance, injuries, player acquisitions, intriguing matchups and weather can significantly influence the ticket demand for individual games. Historically, teams have attempted to forecast demand for games at the beginning of each season and set variable ticket prices based on these forecasts. However, many of the factors that affect demand are impossible to predict months in advance. Therefore, 20 of the 30 MLB teams have recently begun implementing a dynamic ticket pricing model which allows them the flexibility to change prices daily throughout the season in order to capture the true value of each game. Using advanced software, teams are able to evaluate the changing value of tickets based on a variety of data points and make necessary adjustments. Many of the teams who have implemented dynamic ticket pricing assure their fans that the new model guarantees that fans receive the best value for their dollar. However, MLB fans seem to be unconvinced that the model is truly to their advantage. After asking 100,000 of their Facebook fans what they thought about dynamic ticket pricing, Fan Freedom concluded that most fans are skeptical of the concept and think it is unfair. For example, survey data showed that 53% of fans that had bought a dynamically priced ticket felt like they had “lost money” while only 29% felt like they had “saved money.” According to our own survey of over 75 avid Major League Baseball fans from across the United States, 31% of fans believe that they “save money” by purchasing dynamically priced tickets, while 47% believe that they “lose money.” Additionally, 42% said the dynamic ticket pricing model makes them want to purchase tickets “as soon as possible”, while 37% said they model makes them want to wait until “closer to game time.” This data indicates that teams who want to maximize ticket revenue and game attendance, while also incenting fans to make earlier purchase decisions through the dynamic ticket pricing model should do a better job of transparently explaining the model to fans and communicating its benefits. Atlanta Brave Dynamic Pricing

During the 2012 season, the Atlanta Braves followed the emerging trend in ticket pricing strategy by deciding to dynamically price tickets in the Outfield Pavilion section. Rather than dynamically price the entire stadium, like some MLB teams have done, the Braves chose to implement the model on a trial basis in the outfield section. When the introduction of dynamic pricing was announced, Braves Executive Vice President of Market and Sales said, “I still have some reservations about...
tracking img