Ways to increase the productive use of space
Sport stadiums need to reduce the idle time by renting the arena for events other than its core functionality that is they can offer pre – show or post – show events such as concerts or exhibitions.
Multi –purpose stadiums holding multiple events allows revenue share to be increased
Advertising and sponsorship allows both time and space to be sold explicitly meaning that the stadium has control over how long a certain ad space is used but does not give the control over how space is designated
Ideal when a game is televised which results in tremendous revenue generating opportunities.
Stadiums sell time essentially as they sell service experiences in the form of events i.e. sporting event or a concert rather than time by the minute or by the hour. As the duration of the event cannot be controlled they have less control over how long customers use their space. This might limit the revenue potential of the sports arena. However, there are ways where stadiums can also sell time such as by the minutes, the hour or the day.
This allows better control of its capacity because they know how long customers will use the space.
Different options to sell time in a stadium.
- Advertising and sponsorship
- Subletting space to restaurants and bars
- Subletting space to retail and souvenir shops
- Car parks
- Events such as meetings, conventions, conferences and Banqueting, weddings, tours etc.
- Price discrimination for the market segment i.e. seat category, booking time, type of event
- Bundling, e.g. suites with amenities (priority parking passes, in-suite food and refreshments etc.)
- Times when periods are slow stadiums can increase demand
- Guaranteed reservations
- Group memberships
- Season tickets, e.g. tickets for all home games of a particular sport. Family fun package, e.g. four tickets with food and drinks.
In essence sport stadiums have many ways to generate revenue, it all depends on space and time and the demand of the customer
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