Dynamic Ticket Pricing
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
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