SEM_5_Ticketing and Secondary Sales

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Ticketing and
Secondary Sales
Georgia CTAE Resource Network
Written by Krystin Glover and Caleb Allred
Importance

Ticket sales provide financial backbone
for any organization within the industry
 In
2006, consumers spent $15 billion on
sporting events, $11 billion for amusement
parks, $9 billion for movies, and $790 million
for Broadway plays
 Typically generate 50-66% of a major league
soccer franchise’s annual revenue
Ripple Effect

Sponsorships increase in value with increase in
ticket sales
 Sold
out events maximize exposure for sponsoring
companies
Trends

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Like all industries, business trends play
important role in marketing
A current trend is “flex” ticket packages
 “Orlando
Flex” ticket package offers buyers access
to several theme parks in the Orlando area
Ticket Sales Strategies
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Season Tickets
Ticket Packages and Mini-Plans
Season Ticket Equivalents
Group Tickets
Theme Night Packages
Advanced Sales
Premium Seat Packages
Walk-Ups and Promotionals
Season Tickets


Provides consumers with a ticket to every home
event for one package price
Playoff (or post-season) are not typically
included
 Inclusion

of playoff tickets can be powerful incentive
Typically provide core revenue stream for most
professional sports teams, colleges, and
universities
Season Tickets continued…

Most organizations include additional
benefits for season ticket holders
 Houston
Astros offer priority on purchasing
post-season games if team advances
 Miami Dolphins provide 10% discount at gift
store, complimentary newsletter, exclusive emails, and opportunities to win special prizes
Ticket Packages and Mini-Plans
Groups together select number of events,
often at discount price
 Offer special rate and/or additional benefit
for committing to more events
 Offer flexibility by requiring smaller
financial and time commitments

Package and Mini-Plan Examples


Orlando Magic half
season package includes
customer benefits and
free subscription to e-mail
newsletter
Calgary Flames offer
weekend packages that
feature only weekend
games
Season Ticket Equivalents
Sum of all various ticket packages sold
 Sometimes referred to as FSEs (Full
Season Equivalent)

 Kansas
City Royals sold 400 quarter season,
800 half season, and 2,000 full season
packages, they have sold 2,500 FSEs
Group Tickets
Reserved block of tickets for a specific
event
 Usually require a minimum of ten or more
for group rates
 Examples

 Most
Broadway plays and musicals
 Professional sports teams
 Many theme parks
Theme Night Packages
Designed exclusively for particular group
 Intended to attract large groups by
customizing the experience

 Charlotte
Bobcats host teacher appreciation
night—special discount for teachers
 Houston Comets promote Girl Scout night
with special prices for girl scouts, meeting
players, group photo with mascot, and games
on the court
Advanced Sales
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Promotes sale of individual event tickets prior to
start of season or event
Encourages fans to purchase in advance to
eliminate risk of people changing their minds on
the day of the event
 University
of Wisconsin athletics policy states ALL
reserved single game tickets MUST be purchased in
advance.

Only general admission is sold on day-of-game
 Cleveland
Cavaliers utilize wristband lottery priority
system for fans planning to purchase tickets
Premium Seat Packages
Feature additional benefits or values
 Include suites, courtside seats, other
preferential or “VIP” treatment

 Luxury
suites
 Club seats may include VIP parking, private
autograph sessions, locker room tours,
private practice viewing, etc.
 Discounts on refreshments, merchandise, etc.
Walk-Ups and Promotionals
Purchased upon arrival at event
 Sometimes called day-of-game sales
 Creative promotions increase walk-up
sales

 Portland
Trail Blazers “Elvis Night”
encouraging fans to dress like Elvis with
costume contest and Elvis themed
entertainment
Ticket Processing
Mechanics of Ticketing
Processing
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Distribution
Database Marketing
Service
Drawbacks
Strategies for
Attracting Secondary
Sales
Distribution
Technology streamlined distribution of tickets
 Internet
offers many access points
TicketMaster.com
 Fandango.com
 Individual team, league or event websites
 Online ticket brokers

 75

million MLB tickets sold annually
One third purchased online
Distribution continued…
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StubHub.com reportedly sells 300,000 tickets
per month
Many offer buyers option to print off own tickets
Many venues utilize barcode system for
scanning tickets
 Helps
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avoid common problems such as:
Lost or stolen tickets (can be deactivated or replaced)
Erroneous selling same seat more than once
Database Marketing
Marketing efforts through database
containing information about existing and
prospective customers
 Steadily growing trend
 More effective—stores information directly
relating to fan base

 Portland
Trail Blazers e-mail campaign
offered complimentary tickets to pre-season
game for registering with online database
Database Marketing continued…
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Allows organization to effectively
 Generate
new business
 Boost renewal and retention rates
 Increase fan loyalty
 Strengthen relationship with customers

Better understanding of fan demographics
 Improve
communication with fans
Service
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Many organizations offer online account
manager programs for season ticket holders
 Memphis
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Grizzlies season ticket holders may
Forward tickets electronically—allowing customers to email
tickets to other people, even last minute
Manage ticket usage and guest list
Edit personal profiles to keep account info updated
Make payments, view statements, and renew ticket packages
Technology makes communication easier and
more effective
Drawbacks
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Unauthorized third party selling “scalpers”
 Drives
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ticket prices up
Ticket scalpers purchase tickets at face value and resell
them for much more than the original price
Illegal, but difficult to monitor and track
Strategies for Attracting Secondary
Sales
Challenged to adapt to rapid growth of
secondary ticket market
 Many organizations partner with
secondary ticket sellers to share profits

 StubHub
partners with St. John’s and
Georgetown Athletics, in addition to others
 RazorGator lists major league partners as
New England Patriots, Philadelphia Eagles,
San Francisco 49ers, and Seattle Seahawks
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