Event Ticketing & Location Event Ticketing & Location Based ServicesBased Services

September 14, 2010

AgendaAgenda

Case Study: How is the Ticketing Industry utilizing LBS to Increase Venue Profitability

• Discover how ReserveX is harnessing location relevance to sell event tickets and drive revenues

• Examine why building key partnerships is integral to ReserveX's business model

• Utilize revenue management techniques with location to add value to both brands and users

IntroductionIntroductionKelly TompkinsPioneer in the development of various online travel and transaction based services over the last 15 years including:

• Development of Sabre WebReservationsAssisted United Airlines in developing E-FaresDevelopment of Sabre WebReservations

• Assisted United Airlines in developing E-Fares• Founded LeisureLink – The first global vacation

rental reservation network• Founded AdventureLink, the largest aggregator

of adventure travel• ReserveX Founder & CEO – mobile event

ticketing and revenue management platform

Event Ticketing ChallengesEvent Ticketing Challenges

• 80% of shows do not sell out and approximately 40% of all tickets go unsold (Source: Michael Rapino, CEO Live Nation -

Brand Week, June 2, 2010)

• Estimated annual ticket revenue for unsold tickets represents $6.7 billion (Source: ReserveX estimate)

• Live Nation revenues were down 9% ($822m) for the first 6 months and could be down as much as 15% for the second half of 2010 (Source: Michael Rapino, CEO Live

Nation - CNBC Interview, July 16, 2010)

• Downward pressure on margins is forcing the ticketing industry to streamline costs & become more savvy marketers

Revenue Management ExplainedRevenue Management Explained• Revenue management, is the process of

understanding, anticipating and influencing consumer behavior in order to maximize revenue from a fixed, perishable resource.

• It is a disciplined process for achieving profitable growth by assuring that the right products are sold:growth by assuring that the right products are sold:

• To the right customer• Through the right channel• At the right time• At the right price

• Robert Crandall former Chairman of American Airlines called revenue management "the single most important technical development since deregulation.”

Industry ComparisonIndustry Comparison

Travel Industry Event Ticketing Industry

• Airlines operate on an average operating margin of 4.6% (Source: Aviation Blog - July 22, 2010)

• Live Nation’s operating margin is 2.6% (Source: Investors.com,

August 20, 2010)

• Hotels average operating margin is 7.5% (Source: ReserveX

• Ticketmaster’s operating margin is 5.8% down from margin is 7.5% (Source: ReserveX

Estimate)

margin is 5.8% down from 6.05% in 2009 (Source: Q4, 2009

Ticketmaster financials)

• Airline load factor and hotel RevPar (revenue per available room) are the critical tools for determining yield and maintaining profitability

• The event ticketing industry has no comparative tools for maximizing venue revenues

How Revenue Management WorksHow Revenue Management Works(1) Dynamic

PricingUAL Flight # 0101 – ORD / LAX Load Factor = 68% (Avg. 72.1%) Time Check 12amUAL Flight # 0101 – ORD / LAX Load Factor = 68% Time Check 9amUAL Flight # 0101 – ORD / LAX Load Factor = 68% Time Check 12pmUAL Flight # 0101 – ORD / LAX Load Factor = 70% Time Check 6pm

(2) Customer Segmentation

(3) Distribution

Frequent Flyer’s

EconomyBusinessTravelers

First Class

Travel Agents

Online Travel Agents

Opaque Channels

Tour Operators &

Consolidators

Airline Web Sites

1. Aggregate Data Feed – A powerful technology switch connecting suppliers to distributors that delivers standardized data feeds for integrating event ticketing with Web sites and Smartphone applications.

2. Ease of Use – A consumer friendly, comprehensive interface for purchasing event tickets.

The ReserveX SolutionThe ReserveX Solution

3. Promotional Targeting – ReserveX’s SeatAgentTM technology delivers targeted promotions to a large audience, using location based data.

Ticketing System

Venues

ReserveX

Pubs &

Broadcasters

Telematic

LBS

Websites

ReserveX is targeting a broad range of affiliate distribution partners that delivers new revenues and valuable location data

for revenue management targeting.

ReserveX DistributionReserveX Distribution

Web AffiliatesPublications / Broadcasters

Mobile Providers

Location Based Services

Telematic Providers

TARGET AUDIENCE• Individual Ticket

Purchasers• Family

• V.I.P. CustomersLOCATION FREQUENCY

ReserveX Revenue ManagementReserveX Revenue Management

PROMOTION TYPE

•Discount

•Package Incentive

LOCATION

Locate consumers within specific

geographical areas

FREQUENCY•All Channels

•Send to all users

•Infrequent users

•Frequent usersThe right

promotion, to the right consumer, at

the right time!

The Consumer Experience

Proprietary & Confidential 11

Sample Scenario Sample Scenario –– Staples CenterStaples CenterSeating Capacity: 19,000 Total Annual # of Tickets Available: 3MM

# Unsold Tickets: 1.2MM

Total Unsold Tickets Converted

Annually: 302K

Incremental Ticket Revenue Generated: $10.5MMIncremental Onsite Revenue Generated: $5.4MM

Total Incremental Revenue Generated: $15.9MM

LA Metro Area LBS Audience Reach via

Distribution Partners:

1.5MM

• Location data makes it easier for consumers to find entertainment options, while giving the event ticketing industry a powerful tool for addressing the $6b in unsold tickets.

• Nearly 15 billion tickets will be delivered to subscribers' mobile devices worldwide by 2014

ConclusionConclusion

mobile devices worldwide by 2014 (Jupiter Research: Mobile Ticketing

Applications & Markets - Transport, Sport & Entertainment 2009-2014)

• Location data drives the ReserveX’s SeatAgent™system for delivering targeted promotions to precise target audiences

• ReserveX will launch this fall and is currently signing up affiliate partners!

Thank you!Thank you!

Kelly Tompkins – CEO & FounderEmail. Kelly.tompkins@reservex.com

Tel. (626) 408-2034Tel. (626) 408-2034www.reservex.com