The right ticket management platform can make a tremendous impact on a venue’s top and bottom lines. The fact remains that every venue would love nothing more than to fill more seats for every event because each attendee acts as a revenue component. The true inherent value of a ticket far exceeds its face value. Today, many venues routinely miss out on the numerous additional revenue streams associated with a ticket such as food, beverage, merchandise, and parking. Simply put, a suitable ticket management tool can provide support to each of these areas and enhance ticket utilization while creating more revenue for any venue.
1. Sponsor Utilization
On average, roughly 20% of all tickets are given to corporate sponsors as part of contractual agreements. Sponsors stunningly allow as much as 80% of their tickets go to waste every year. There are numerous reasons for why this waste regularly occurs. Whether it is due to the difficulty of managing inventory or last-minute cancellations, a solution is needed to counteract these obstacles. Every ticket has significant value not only to a sponsor but to a venue as well. The primary challenge, then, is to unlock this value.
From a financial standpoint, every seat that remains empty for an event at a venue leads to a loss ranging between $35 and $50 depending on the sport. So, if a sponsor owns 100 season tickets to Red Sox home games and it does not use 20 of them for each of the 81 games, then that accounts for a loss between $56,700 and $81,000 per sponsor.
In partnering with a ticket management platform, a venue can help its partners, such as sponsors and suite holders, manage their ticket inventories and, more importantly, optimize them so that each and every ticket is used for some purpose. Concierge Live stores ticket individually which allows sponsors to manage their unused inventories in ways that no other platform can match, especially through the system’s experiential marketing feature that targets specific internal and external audiences.
2. Low Demand Events
Venues are constantly bombarded by companies who aim to sell more tickets for them. The problem with this approach is that every ticket seller uses the same strategy by discounting tickets in a public manner and reaching the same audiences time after time. Venues ultimately want to fill seats and thereby raise ticket utilization, but the reality is they are not creating any additional value for themselves or their sponsors.
Concierge Live can help venues with filling their seats by utilizing partnering sponsors’ marketing expertise. This connection can be made through the experiential marketing feature which eliminates the typical price drops and hits to pricing integrity just to get rid of a ticket via a discount channel. Through a partnership with Concierge Live, venues can tap into the millions of employees and customers their sponsors have access to without public knowledge that tickets are available. Additionally, the experiential marketing feature allows sponsors to send targeted messages to customers, prospects, and employees to initiate ticket requests. In turn, sponsors are able to capture demand (data) even when there are no more tickets available. It is important to note as well that a venue does not have to allocate a specific amount of tickets as we demand can be captured up front through Concierge Live.
3. Sponsorship Renewal
Today, sponsors are increasingly cautious with how they spend and organize their budgets. Venues need to be able to consistently bring more value to the table in order to keep the money flowing. With the help of Concierge Live, this can be done by offering a tremendous marketing opportunity to benefit both venues and sponsors. From a broad perspective, a win-win situation is created for every venue as they increase ticket utilization and add value on the sponsorship side when renewal time arrives all while simultaneously filling more seats. Greater attendance numbers consequently lead to higher food, beverage, merchandising, and parking revenues. All it takes is a little innovation to see the opportunity!