A sport stadium is a venue for sports, concerts, or other events, so to maximise revenue they need to sell physical space for a given length of time for a variety of prices. Sport stadium revenue refers to selling seats(space) per game(time).
The aim is to maximize the revenue per available seat-game. This is done by controlling both space and time in order to effectively manage customer demand. Stadiums do have control over their space as they can divide space e.g. different seat categories. However it is difficult to control time as time is sold per event such as games rather than per hour. Additionally, depending on the functionality of the stadium and the frequency of games, those events are held on different weekdays with frequencies ranging from once a week to once a year.
This is why it is crucial for a sports stadium to have control over time. Controlling both space and time enables stadiums to designate different space and time combinations which target different market segments and are priced differently.
Revenues are generated through ticket sales, but what else?
Management should also focus on additional revenues from food and beverages, the use of function space (if available), the sale of sporting goods (merchandise), and advertising in the stadium (sponsorship).
The biggest area of opportunity for stadiums lies in defining time as precise as possible as this leads to greater control over customer demand which is an integral condition for successful revenue management.
Stadiums manage their space commonly as seats, area for standing and club suites.They can also arrange the space configuration differently i.e. retail, function, F&B space. This Allows the stadium to control the way in which space is sold by designing different types of space with different flavours and styles that will appeal to different market segments and can be priced differently i.e. Boxes offer more privacy, closer to the action and include additional services such as butler service. This package will be priced differently.
Stadiums commonly have the configuration of multi-use designs that is a pitch, a running track can also be used for other events like a concert. Which is helpful to generate further revenue. Most of the stadiums offer boxes or club luxury suites at high prices which can accommodate a limited number of spectators. During special events, those boxes can be very expensive.
A stadium needs to incorporate these mix of categories depending on demand and space and time requirements of each space type so that it is favourable. They are always on the lookout for additional revenue sources e.g. sell other services and products that customers can buy whilst using the space or take them with them after enjoying the event. These services could be rent space for business meetings and other events, Retail and souvenir shop selling merchandise specific to the team, restaurants and bars, car parks, Advertising and sponsorship, tours and museums to attract visitors on non-match days.
Its important for stadiums to resolve the needs of the customer by identifying which products and services should be offered and how they should be offered. These additional services can also have an impact on when customers arrive to an event and how long they stay after an event
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