Ticketing and Secondary Sales

Georgia CTAE Resource NetworkWritten 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

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

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 holdersHouston Astros offer priority on purchasing

post-season games if team advancesMiami Dolphins provide 10% discount at gift

store, complimentary newsletter, exclusive e-mails, 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

ExamplesMost Broadway plays and musicalsProfessional sports teams Many theme parks

Theme Night Packages

Designed exclusively for particular group Intended to attract large groups by

customizing the experienceCharlotte Bobcats host teacher appreciation

night—special discount for teachersHouston Comets promote Girl Scout night

with special prices for girl scouts, meeting players, group photo with mascot, and games on the court

Advanced Sales 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” treatmentLuxury suitesClub 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

salesPortland Trail Blazers “Elvis Night”

encouraging fans to dress like Elvis with costume contest and Elvis themed entertainment

Ticket Processing

Mechanics of Ticketing

Processing

Distribution Database Marketing Service Drawbacks Strategies for

Attracting Secondary Sales

DistributionTechnology 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…

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 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 basePortland Trail Blazers e-mail campaign

offered complimentary tickets to pre-season game for registering with online database

Database Marketing continued…

Allows organization to effectivelyGenerate new businessBoost renewal and retention rates Increase fan loyaltyStrengthen relationship with customers

Better understanding of fan demographics

Improve communication with fans

Service

Many organizations offer online account manager programs for season ticket holders Memphis 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

Unauthorized third party selling “scalpers” Drives 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 profitsStubHub partners with St. John’s and

Georgetown Athletics, in addition to othersRazorGator lists major league partners as

New England Patriots, Philadelphia Eagles, San Francisco 49ers, and Seattle Seahawks