The Revenue Gains from Multi‐Tier Ticket Pricing: Evidence from Pop Music Concerts

Eckard, E. Woodrow; Smith, Marlene A.

doi:10.1002/mde.2549

Cited by 11 publications

(4 citation statements)

References 30 publications

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“…Derived from the analysis, specific implications and recommendations for the German Bundesliga clubs are presented. In addition, the paper will look at future ticket pricing strategies and attempts to answer the question whether dynamic pricing/revenue management could be utilised by football clubs as a profit enhancing pricing tool (for recent work addressing variable pricing see [12,13]). Broadcasting and sponsoring revenues of football clubs are not the scope of this paper.…”

Section: Purpose and Methodologymentioning

confidence: 99%

Ticket Pricing in European Football-Analysis and Implications

Nufer

Fischer²

2013

saj

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In Europe, football is undeniably sport No. 1.European football clubs attract millions of fans to the venue every season. Despite the highest attendance in European football, the German Bundesliga teams do not capitalise on ticket sales. Surprisingly, the Bundesliga ticket prices are the cheapest among Europe's top leagues. As the price is the most effective profit driver, better pricing decisions can drive revenues and profits up without any upfront investment. The paper comprises a thorough analysis of match day and season ticket prices in the German Bundesliga in comparison to the pricing in other top European football leagues. Derived from the analysis, specific recommendations and implications for pricing strategies in regard of fan acceptance in football are presented. Furthermore, the paper attempts to answer the question of whether revenue management and dynamic pricing could be utilised by football clubs as a profit enhancing pricing tool in the future.

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Section: Purpose and Methodologymentioning

confidence: 99%

Ticket Pricing in European Football-Analysis and Implications

Nufer

Fischer²

2013

saj

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“…Different studies highlight the relevance of seating position as a determinant of experience quality (Estelami et al 2019 ; Rajagopal 2011 ; Serway and Vuille 2012 ). Price differentiation via multiple ticket categories for different seating positions increases revenues substantially: a study examining price differentiation for Broadway theater tickets finds a revenue benefit of 5% (Leslie 2004 ), as do studies examining the benefits of price differentiation for pop music concerts (Courty and Pagliero 2012 ; Eckard and Smith 2012 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing practices of football and basketball clubs in Italy

Hinterhuber

Viberti

2021

J Revenue Pricing Manag

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Revenue management is widely adopted across industries—except in the sports industry. In the context of the present study, we contact every single football and soccer club belonging to the top league in Italy—one of the world’s most successful football nations—and obtain responses from close to half of all clubs. We find that one-third of all football clubs apply revenue management, far more than basketball clubs. Basketball clubs rely heavily on fixed pricing, whereas soccer clubs use variable pricing or revenue management. Study data also suggest that perceived barriers to revenue management include a fear of alienating customers or perceived high implementation costs; since experiences of revenue management implementation are overwhelmingly positive, this study suggests that the fears of revenue management implementation are overblown. This study advances research on the practical implementation of revenue management in non-traditional industries and provides an encouragement for executives working in other industries to implement revenue management.

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“…They find that price discrimination through multiple ticket prices can increase revenues by 5%—the same result as Leslie ( 2004 ) finds in an earlier study of Broadway theatres. Eckard and Smith ( 2012 ) find a 4.2% revenue benefit from the use of multi-tier pricing at a major US pop music venue. Ekelund and Ritenour ( 1999 ) add the variable of time opportunity cost, adapting the approach introduced by Owen ( 1971 ) in their quantitative analyses on the demand for symphony orchestra tickets.…”

Section: Introductionmentioning

confidence: 99%

Workers’ access to Swedish opera houses and concert halls, 1898–2019

Albinsson

2021

J Cult Econ

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In this study ticket prices to Swedish opera houses and symphony orchestra concerts are compared to wages during the 1898–2019 period. Both wages and ticket prices have increased continuously. The same kind of policy objectives concerning social inclusion of disadvantaged groups that were established in the beginning of the twentieth century is still proclaimed. The most favourable ticket pricing policies for buyers were used in the decades around the first national Cultural Policy Act from 1974. The study shows that ticket price levels have risen thereafter to a level much less favourable for low-income workers. Managements do use some price discrimination tactics. However, they do it uniformly for all events. They now focus on the promotion of special, ‘popular music’-based events as a response to social inclusion directives. The idea is that attending such performances will make visitors interested in the normal repertoire, as well. The choice of high-level ticket prices for the traditional content means that the standard audience remains monocultural.

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The Revenue Gains from Multi‐Tier Ticket Pricing: Evidence from Pop Music Concerts

Cited by 11 publications

References 30 publications

Ticket Pricing in European Football-Analysis and Implications

Ticket Pricing in European Football-Analysis and Implications

Pricing practices of football and basketball clubs in Italy

Workers’ access to Swedish opera houses and concert halls, 1898–2019

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