Entertainment – Our Pricing Solutions

Our Pricing solutions help venues optimize their pricing to increase revenues and profits.

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.

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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

Drive Revenues

Utilize the price insensitivity of spontaneous and solvent customers for high-demand shows and events to increase overall revenue.

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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:

1

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.)

2

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

3

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

Typical Results For The Entertainment Industry

+5% - 10%

Increase in attendance during off-peak times

+5% - 15%

Increase in overall revenue

+5 - 10%

Increase in share of online sales

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

General Manager, Classictic

FAQ – Answers to Your Questions

Why is dynamic pricing suitable for entertainment providers?
The combination of fixed capacity and variable demand creates the perfect conditions for dynamic pricing. As price sensitivity for each event fluctuates depending on performer, date of the event, weather and several other factors, dynamic pricing can be used to increase attendance at low demand events/shows as well as slightly lift ticket prices for events/shows with high demand.
What specific goals can be reached with dynamic pricing?
Real-time dynamic pricing enables entertainment providers to achieve strategic goals such as:
-Drive ticket revenues
-Increase visitor attendance at low demand events/shows
-Lift online shares and collect customer data
-Secure earlier cash in by enticing earlier bookings
What are the benefits of dynamic pricing for spectators ?
By booking early and/or attending low demand events/shows, spectators are rewarded with more attractive prices.
How to communicate dynamic pricing in the entertainment industry?
-Communication is key for a successful introduction of dynamic pricing. It is crucial to get spectators on board by communicating clearly and transparently what the dynamic pricing switch involves and how it can benefit spectators
-We propose to communicate how fans can get the best prices e.g. “Buy early buy smart”.
-We also encourage advertising using “from prices” or taking down the price lists from the website to maximize flexibility
-We help you with both online and offline communication with fans based on our world-wide experience
What are the expenses for event providers implementing dynamic pricing?
The costs vary based on the amount of dynamically priced tickets. However, revenue uplifts achieved with dynamic pricing are typically 5x – 10x higher than the cost of implementation.
Will our prices increase as a result of dynamic pricing?
The choice is yours. Dynamic pricing works “up” and “down”
We recommend a dynamization around the current price level: for events with high demand an increase in prices to skim willingness to pay and for events with low demand a decrease in prices prices to stimulate demand.

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
Berlin, Germany

This congress is uniting the decision makers from companies, clubs, media and agencies to discuss the current developments in the digital sports and media area.

Event website

Erlebniswelten Forum

November 06, 2018
Munich, Germany

This forum has developed to the platform for entertainment and tourism in the DACH region. The event serves as an inspiration for current trend and experience exchange.

Event website

Kulturinvest kongress

November 12-13, 2018
Berlin, Germany

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..

Event website

Arena Summit

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.

Event website

How Can We Help You?

Let's talk about how we can achieve your goals.

Leave us a message to schedule a first free consultation about your needs and goals. We are happy to hear from you. Or just give us a call, send us an email, or stop by at our office in the heart of Berlin.

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10961 Berlin
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