Ticket Pricing Strategies Research Articles

Study on the Optimization Strategy of Chinese Film Ticket Price Pricing

Film, as an important cultural industry and entertainment mode, has developed over the years and formed a relatively complete industrial chain. However, in the long-term development process, movie ticket pricing has always been a hot issue that has attracted much attention. In recent years, China's film market has shown a trend of rapid development, and the box office has repeatedly reached a new high, but the level of movie ticket prices has also been rising, which has triggered widespread social concern and discussion.Research and optimization of movie ticket pricing strategy is of great significance to improve the competitiveness of the movie market and promote the sustainable development of the movie industry.This paper first reviews the current research status of the predecessors, summarizes the relevant theoretical basis needed for the study, analyzes the existing problems in movie ticket pricing, conducts an analysis of the change in domestic ticket prices and compares it with international prices, and finally concludes with an optimal strategy.

The liberalisation of high-speed rail services in Spain: Ticket price in the Madrid–Barcelona corridor

Current EU regulations and initiatives aim to promote a series of structural changes within the rail sector to improve its efficiency and environmental sustainability. Thus, a liberalisation process has been implemented through the so-called "railway packages". In the case of Spain, in 2021 the Spanish state-owned railway infrastructure manager (ADIF) culminated a long and complex process, initiated in 2016, to replace the existing public monopoly with free market models. As a result, three different companies have signed a ten-year agreement on the provision of high-speed services on the Madrid-Barcelona route, Madrid-East and Madrid-South.By facilitating the entry of new competitors, a reduction of transport costs is expected, which will in turn reduce the charges paid by operating companies. This will benefit rail passengers. In fact, the Spanish high-speed rail network presents, in general terms, excess capacity and low levels of congestion, which makes it easier for new operators to access the infrastructure. Therefore, new rail services will increase by 65% the network's capacity, compared to pre-liberalisation scenario.Given the new highly competitive scenario, the prices and types of tickets are much more complex as they are highly influenced by numerous factors, including internal factors, external factors, competition among rail operators and strategic customers. However, an appropriate ticket-pricing strategy can not only attract more passengers but also improve revenue. Therefore, the main goal of this paper is to analyse the pricing strategy for High Speed Rail (HSR) services in the Madrid-Barcelona corridor, considering the competition among different rail operators.

Real Options Applied to Consumer Goods: Maximizing Profits and Fan Welfare

The use of pre-sale options for tickets is underutilized in sports. In this study, we show that the use of pre-sale options increases profits, but also increases consumer utility—making both parties better off. Thus, the efficiency gains and profit gains make incorporating options with advanced selling, as opposed to just advanced selling, an optimal strategy. Through this ticket pricing strategy, the organizer can realize a significant increase in profits from a separating equilibrium pricing strategy while simultaneously consumer welfare increases as fans know, with certainty, they have tickets to the game if their team participates. If these options were offered by participants instead of the organizer it also allows the participant to smooth their revenues over time.

Joint Optimization of Ticket Pricing Strategy and Train Stop Plan for High-Speed Railway: A Case Study

In this study, we examined ticket pricing and train stop planning for the high-speed railway (HSR), which integrates two key aspects of railway operation and organization. We considered that passenger demand is sensitive to the generalized travel cost (depending on the ticket price and the travel time) and that the train stop plan can affect the travel time and passenger distribution. Then, a mixed-integer non-linear optimization model was proposed for the joint problem of ticket pricing and train stop planning to maximize HSR’s transport revenue and minimize passengers’ travel time. Based on the high similarity between combinatorial optimization problems and the solid annealing principle, we designed a combined simulated annealing (CSA) algorithm to solve practical problems. The results of a numerical example in the real HSR network showed that the proposed method can improve transport revenue by 5.1% and reduce passengers’ travel time loss by 11.15% without increasing transport capacity.

The Price of Success and Labour in Sports – Evidence from Match-day Ticket Pricing Strategies in the English Premier League

The Price of Success and Labour in Sports – Evidence from Match-day Ticket Pricing Strategies in the English Premier League

Identifying and prioritizing the essential factors on ticket pricing strategy in a local market based on empirical study: Iranian domestic market

In the airline industry, ticket pricing is one of the most complex problems that researchers and practitioners are extensively involved on it. This research analyzes the effect of airline and passenger factors on ticket pricing in a domestic market that can play substantial role in long-term ticket pricing. Different factors are collected from literature and these factors are examined by screening techniques to find the most important ones. Regression analysis as a linear technique and Levenberg–Marquardt as a nonlinear technique are applied to find the relationship that exists between the most important ones. Research findings confirm that airport dominance can make a significant effect on ticket pricing. Difference between full service carrier (FSC) and low-cost carrier (LCC) ticket price is one of the other important factors and finally presence of flag airline as a price regulator in a route can affect ticket price. Our findings are based on a real case study and can enhance pricing power for commercial airlines in domestic markets.

A Conceptual Model of Ticketing Pricing in Intercollegiate Sports

As college athletics have become a big business, ticket pricing strategies are considered crucial to the operations of athletics programs. However, relatively little research has integrated and explained the process of ticket pricing in the context of intercollegiate sports. To fill the existing gap, the current study articulates a conceptual model of what factors are important for ticket pricing in intercollegiate sports. The model provides multiple theoretical frameworks whereby determinants (stakeholder-related, institution-related) influence ticket pricing (managerial pricing, dynamic ticket pricing) with two moderators (the nature of non-profit organizations, involvement of ticket outsourcing companies). The model proposed in the current study contributes to integrating both factors of the decision-making process on ticket pricing for intercollegiate sports.

Collaborative Optimization of Dynamic Pricing and Seat Allocation for High-Speed Railways: An Empirical Study From China

In order to improve the high-speed trains’ service levels and increase their market shares, the Chinese high-speed railway (HSR) enterprise is reforming its ticket pricing strategy. A collaborative model that incorporates seat allocation decision into HSR dynamic pricing problem based on the revenue management theory is proposed, in which the objective is to maximize the total ticket revenue of enterprise under the constrains of price ceilings. A two-stage algorithm is developed to solve practical problems. The first stage solves the optimal price problem, and the second is to obtain the optimal seat allocation decisions. Finally, a case study based on the actual ticket data of Beijing-Shanghai HSR in China is implemented to show the effectiveness of the proposed approach, for which the results show that compared with the fixed price case, the revenue improvement ranges from 4.47% to 4.95% by using dynamic pricing strategy. Also, the case analysis shows that dynamic pricing strategy will lead to an increase in short-haul demands whereas a decrease in long-haul demands.

Scale heterogeneity in discrete choice experiment: An application of generalized mixed logit model in air travel choice

This study explores to what extent scale heterogeneity (i.e., varying standard deviation of the errors across consumers) is important in air travel choice using data from a stated preference discrete choice experiment. We used generalized mixed logit model (GMIXL) that nests scale and taste heterogeneity in the context of air travel ticket choice. We found empirical evidence of the importance of often-neglected scale heterogeneity along with pre-dominant taste heterogeneity. The findings suggests that it is important to account for various forms of heterogeneity with GMIXL to model air travel demand to identify variety of consumer segments, which has implications for airline optimal menu of ticket offerings and pricing strategies.

Are Fair Weather Fans Affected by Weather? Rainfall, Habit Formation and Live Game Attendance

We analyze habit formation in sports attendance utilizing rainfall as an unexpected, transitory shock to attendance costs. Using attendance data from Major League Baseball (MLB) and NOAA weather data, we analyze the impact of variation in game day weather conditions on current and future MLB attendance. The empirical strategy permits identification of both the formation and persistence of habit from exogenous weather shocks. Past adverse weather shocks increase future attendance by about 200 fans per game. Our study contributes to the literature developing empirical evidence of habit formation in the field and provides policy implications for optimal ticket pricing strategies.

PRICING STRATEGY FOR QUASI-PUBLIC FOREST TOURISM PARK CASE STUDY IN GUNUNG PANCAR FOREST TOURISM PARK, BOGOR INDONESIA

The dynamic of 3-parties conflict of interests (investor, local people and government) in having actual income from the nature tourism park business in Indonesia became worse since a “very progressive” Government Regulation on Forestry Related Services Tariff (so called PP 12/2014) was issued. On one hand, everybody agrees to improve the 17 years old tariff regulation of PP 59/1998. On the other hand, the “unclear reason” of the new tariffs in PP 12/2014 has shocked many parties and created many difficulties while implemented. This paper studies visitors’ expenditures and their willingness to pay (WTP) for every recreation services scenario by using contingent valuation method (CVM) survey with open-ended eliciting questionnaire instrument. Regarding the characteristic of Gunung Pancar Forest Tourism Park (GPFTP) the method was used to justify a reasonable and eligible ticket pricing strategy at the GPFTP as a quasi-public recreation park. The survey has also specifically addressed the reasonable ticket-price that aligns with the financial assumption of investor's business plan and local people's economic activities. Results of the survey show that the continuum of visitors’ WTP is ranging from 3.4 times (as the response to scenario-1) up to 12.7 times (as the response to scenario-5) of the recent ticket price. The WTP of scenario-2, 3 and 4 are ranging from 4.7, 6.2 and 7.5 times, respectively. Furthermore, the results of Tobit Regression Analysis show that seven important variables are positively correlated, while six variables are negatively correlated with the WTP.

Is Dynamic Pricing Viable for Small Market Collegiate Athletics?

Sport organizations use dynamic ticket pricing (DTP) strategies to generate extra revenues. DTP is based on demand and occasions. This exploratory study reported the results of the online survey data collected from 48 mid-west college/university athletic directors and marketing managers. The participants shared responses regarding their perceptions of the use of DTP by regional and private smallmarket collegiate athletic programs. Specifically, the study examined the perceived benefits and shortcomings of DTP. Past experiences implementing the strategy are also discussed. The results concluded that the majority of respondents were receptive to DTP although they questioned whether the strategy could deliver excessive financial benefits. They also noted that the practice of frequent ticket price change may be cumbersome and challenged.

An examination of dynamic ticket pricing and secondary market price determinants in Major League Baseball

Over the past several years, professional sport organizations have started to shift from cost-based ticket pricing strategies to a demand-based focus, where price considerations are driven, in part, by market demand. Dynamic ticket pricing (DTP), where prices fluctuate daily based on market factors, evolved from this transition. The motivation for DTP stems from the significant growth of the secondary ticket market, where ticket prices are almost completely demand driven. One issue with this strategy is the limited understanding of specific factors that influence dynamically priced tickets and secondary market tickets. The current study examined price determinants in the primary market where DTP has been implemented and comparable tickets in the secondary market. Four regression models were developed for this purpose. The first two models examined factors influencing dynamic ticket price. Both DTP models were found to be significant, explaining 91.4% and 70.8% of the variance in dynamic price, respectively. The second two models examined factors influencing secondary market ticket price. Both secondary market models were found to be significant, explaining 82.7% and 79.7% of the variance in secondary market price, respectively. There were many consistencies between models, including an emphasis on team and individual performance factors, ticket-related factors, and time-related factors. However, there were a number of unique aspects to each model, which may help sport managers develop pricing strategies that better reflect market demand for sport

A New Age of Demand-Based Pricing: An Examination of Dynamic Ticket Pricing and Secondary Market Prices in Major League Baseball

In 2010, the San Francisco Giants became the first professional team to implement a comprehensive demand-based ticket pricing strategy called dynamic ticket pricing (DTP). In an effort to understand DTP as a price setting strategy, the current investigation explored Giants’ ticket prices during the 2010 season. First, the relationship between fixed ticket prices, dynamic ticket prices, and secondary market ticket prices for comparable seats were examined. In addition, seat location and price changes over time were examined to identify potential effects on ticket price in the primary and secondary market. Giants’ ticket price data were collected for various games throughout the 2010 season. A purposive selection of 12 games, which included (N = 1,316) ticket price observations, were chosen in an effort to include a multitude of game settings. Two ANOVA models were developed to examine price differences based on pricing structure, market, section, and time. Findings showed significant differences between fixed ticket prices, dynamic ticket prices, and secondary market ticket prices, with fixed ticket prices on the low end and secondary market ticket prices on the high end of the pricing spectrum. Furthermore, time was found to have a significant influence on ticket price; however, the influence of time varied by market and seat location. These findings are discussed and both theoretical and practical implications are considered.

Real Options Applied to Consumer Goods: A Look at Option Pricing in Sports Tournaments

This paper demonstrates that both consumer utility and event organizer profits increase when tournaments played at neutral sites sell tickets via options, which are exercisable only if the desired team reaches a given round of the tournament, and advanced selling; rather than just utilizing an advance selling strategy. This approach yields a separating equilibrium pricing strategy. Through this ticket pricing strategy, the organizer can realize a significant increase in profits as a result of a separating equilibrium. Simultaneously consumer welfare increases as fans know, with certainty, they have tickets to the game if their team makes it. If these options were offered by participants instead of organizer it allows them to smooth their revenues over time.

Designing ticket price strategies for professional sports teams using conjoint analysis

This study emphasises the need for professional teams to have sophisticated methods for devising ticket pricing strategies. The research was designed to supply team managers with meaningful information from which to construct ticket prices that fit the needs of their fans. Three different fan segments were identified (general adults, college students and middle and high school students) and four attributes for determining ticket prices in a given circumstance were selected (Player, Coupon, Point and Price). Conjoint analysis technique was used to conduct the research and analyse findings.

Conditional efficiency, operational risk and electronic ticket pricing strategies for the airline industry

As the USA moves towards an economic slowdown and possible recession, the airline industry is particularly vulnerable to consumer price sensitivity regarding the purchase of electronic tickets. In this research, we provide a methodological approach that utilises operational risk metrics to examine the impact of various electronic ticket pricing strategies on profitability. Specifically, the work presented herein is differentiated from previous airline revenue management studies in the following ways: 1) we develop a Monte Carlo simulation model which can be used effectively to construct conditionally efficient discount ticket pricing strategies, 2) we show that the operational value at risk and expected shortfall are effective measures for weighing the risk-return tradeoffs for efficient discount ticket pricing strategies along the constructed frontier and 3) we implement a demand-recapturing variable in the simulation model where prior studies have assumed independent demand among various consumer classes.

A Ticket pricing strategy for an oligopolistic space tourism market

Abstract It is important for any new launch system to develop a successful pricing strategy and to optimize launch system parameters to receive a high economic profit. A question arises, what will happen when an existing suborbital flight market (the first likely to be established in space) is interfered with by a new established orbital flight market for space tourism. There is a risk that the suborbital space tourism market could be almost instantly displaced when a product capable of reaching orbit was introduced. This is best discussed using the following three cases whose results are presented in this paper. Case A presents a ticket pricing strategy for a suborbital and orbital vehicle if the two vehicles do not compete in the same market. Case B shows the necessary ticket pricing strategy for a suborbital vehicle if there is competition from an orbital flight operator. However, the suborbital vehicle would not be able to keep up with a drop in ticket prices due to its obsolete characteristics. Thus, the suborbital vehicle would be forced to stop operation in the year when flight costs became higher than flight receipts as shown in case C.

DEMAND AND TICKET PRICE ELASTICITY ANALYSIS IN THE SOUTHERN RAILWAY LINE OF THE ISLAMIC REPUBLIC OF IRAN

This paper reports on the research made to model the passenger demand from Tehran to the cities in the Southern Railway line of Iran, and from Ahwaz at the South to the same cities including Tehran. The final acceptable model was the expotential form with independent variables as the population and income level at the origin cities, the ticket price and the index of recreation and education in the destination cities. The calibrated models show that the origin population and recreation-education index of the destination are the first and second most effective parameters. The model is to be used by the Iran Passenger demand and its train scheduling and also for its ticket pricing strategies. The paper proposes suggestions to the company according to the elasticities obtained.