Pricing Challenges And Goals For Entertainment Industry
While theaters and opera houses have a strong cultural mission, they increasingly focus on improving their profitability. We help our customers to drive admissions and revenue with analytics and pricing software solutions.
Challenges for the Entertainment Industry
Hard to predict demand for each show
There are hundreds of factors that influence the demand for shows and events, such as date and time, weather, event type, etc. Predicting the expected demand is key for revenue optimization.
High demand vs. low demand times
Holidays, weekends and evenings attract more visitors than off-seasons, and weekdays. Attractive and dynamic prices shift demand to off-times and increase revenue on peak-times.
Difficulties to communicate price changes
A change of the current pricing model needs careful customer communication to avoid visitor disappointment and bad press. Finding the right communication strategy can be difficult.
Possible revenue increase for dynamically priced shows
Pricing Goals for the Entertainment Industry
Utilize the price insensitivity of spontaneous and solvent customers for high-demand shows and events to increase overall revenue.
Increase visits at off-peak times
Offer attractive prices at off-peak times to shift demand and reduce the impact of fixed costs at those times.
Incentivize online sales
Increase online sales through special discounts to collect more customer behavior information and get better planing security while saving money.
How We Can Help You Achieve Your Goals
To achieve the strategic goals of our clients we usually follow three steps:
Understand status quo
- Analysis of visitor structure and current price strategy (ticket types, seasons, etc.)
- Defining the strategic goals for a new pricing model
- Discover the main drivers for demand and attendance (weather, holidays, etc.)
Analysis of historical & current ticketing data
- Analyze the share of pre-sold tickets throughout the season
- Develop and test interfaces to ensure ease of use for online and box-office customers
- Share best practices for online and offline price communication
Real-time pricing software for daily optimization
- Demand forecast based on prediction tool with machine learning algorithms
- Daily price optimization for tickets based on our software
- Connection of our softare with your ticketing system for seamless operation
What Our Clients Say
”SP developed a model that allows us to determine the willingness to pay for individual customer segments. By tailoring our prices accordingly, we increased our revenue by more than 20%.”.Robert Koch
Our Case Study
Discover how we introduce dynamic pricing with our clients.
Classictic Case Study
In this case study we explain the approach used by us to determine Classictic customer’s willingness to pay by using A/B testing.
- 100k€ increased revenue for tested venues
- 200k€ total annual revenue increase potential
The case study shows the used approach in details and presents the final recommendations for Classictic based on the A/B testing results.
Upcoming Conferences And Events
Find us and come say hello at these industry events, fairs, and conferences:
Digital Sports & entertainment
October 08-09, 2018
November 06, 2018
November 12-13, 2018
The leading forum for European culture providers and promoters is going to take place on November 12 and 13, 2018 in Berlin with more than 100 speakers and moderators to participate at this 10th anniversary of the CultureInvest! Congress..
November 20-21, 2018
Frankfurt am Main, Germany
The summit serves with a high-quality program from the areas management, infrastructure, entertainment, and marketing in stadiums and arenas. Experts present the newest concepts for entertainment and give advices with compliance as well as sponsoring.