Management of bundled tickets in sports and entertainment industry

Download
2012
Yakıcı, Ertan
Revenue management techniques can be used in industries where the capacity is limited and perishable, and the market can be segmented. In this work, the sales of event tickets in the sports and entertainment industry is focused, assuming tickets are sold initially as season tickets and as single tickets later in the revenue horizon. Basic decision problems within this context are the determination of optimal time at which the switch from bundled tickets to single tickets should occur and the decision of which event tickets to include into the bundle. Specifically, we study the optimal time to switch between these market segments as a function of the system state where early switch to a low-demand event is allowed. Under Poisson demand processes, it is shown that the optimal switching time is a set of time thresholds that depends on the remaining inventory and time. Numerical experiments show that profit enhancement can be obtained by deciding the optimal switch time dynamically over the case when the date of switch is announced in advance. Concerning the latter decision problem, we analyze the optimal selection of tickets for bundling and find increase and decrease patterns in total revenue as the time of bundled events change. We offer a simple heuristic method for finding profitable bundles for a given schedule. We also analyzed the revenue contribution from deciding the ticket bundling and sports league scheduling simultaneously. A heuristic method is offered which utilizes the approximate expected revenue values.

Suggestions

Dynamic switching times from season to single tickets in sports and entertainment
Duran, Serhan; Yakici, Ertan (Springer Science and Business Media LLC, 2012-08-01)
Revenue management can be used in many industries where there is a limited, perishable capacity and the market can be segmented. In this paper we focus on the sales of event tickets in the Sports and Entertainment industries, where tickets are sold exclusively as season tickets initially or as single events later in the selling horizon. We specifically study the optimal time to switch between these market segments dynamically as a function of the state of the system. Under Poisson demand processes, we find ...
Performance of the heuristic procedures for constrained projects with progress payments
Sepil, C; Ortac, N (Informa UK Limited, 1997-11-01)
All large scale resource constrained projects involve cash flows occurring during their life cycle. Several recent studies consider the problem of scheduling projects to maximise the net present value (NPV) of these cash flows. Their basic common assumption is that cash flows are mainly associated with specific events and they occur at event realisation times. An alternative assumption, which can be more realistic, is that cash inflows occur periodically, for example every month; as progress payments. This ...
Quantity Flexibility for Multiple Products in a Decentralized Supply Chain
Bakal, İsmail Serdar (2010-09-03)
One of the major complicating factors in decentralized supply chains is the long procurement/manufacturing lead times, which forces the upstream members to commit resources to production based on forecasted demand. Downstream members (the retailer for the rest of the manuscript) would like to have a higher production quantity to be able to satisfy the demand whereas upstream members (the manufacturer for the rest of the manuscript) would like to have some sort of assurance about the demand so that they will...
Uncertainty assessment for the evaluation of net present value of a mineral deposit
Erdem, Ömer; Güyagüler, Tevfik; Department of Mining Engineering (2008)
The profitability of a mineral deposit can be concluded by the comparison of net present values (NPV) of all revenues and expenditures. In the estimation of NPV of a mineral deposit, many parameters are used. The parameters are uncertain. More accurate and reliable NPV estimation can be done with considering the related uncertainties. This study investigates the probability distributions of uncertain variables in estimation of NPV and evaluation of NPV using Monte Carlo simulation. @Risk 4.5.7 software pack...
Tactical inventory and backorder decisions for systems with predictable production yield
MART, Turgut; Duran, Serhan; Bakal, İsmail Serdar (2013-06-01)
We consider a manufacturing system with stochastic demand and predictable production yield. The manufacturer has predetermined prices and limited production capacity in each period. The manufacturer also has the option to save some inventory for future periods even if there is demand in the current period. The demand that is not met is lost or may be backordered for only one period. Our objective is to maximize the expected profit by choosing optimal produce-up-to level ((Y) over bar*(t)), save (S*(t)) and ...
Citation Formats
E. Yakıcı, “Management of bundled tickets in sports and entertainment industry,” Ph.D. - Doctoral Program, Middle East Technical University, 2012.