WAMU 88.5 : Morning Edition

Filed Under:

Caps Look To SF Giants For 'Dynamic Ticketing' Model

Play associated audio

Dynamic ticketing, where the price of admission to sporting events fluctuates, is now gaining popularity among professional sports teams, including the Washington Capitals. The hockey will begin pricing tickets dynamically for the remainder of this season's single-game tickets, meaning buyers could pay more or less than the average ticket price depending on the demand for a particular game.

The Caps are  following the lead of baseball's San Francisco Giants. The Giants had a banner year in 2010, as they won their first World Series in 56 years. It was also the year the Giants became the first professional sports team to base ticket prices on demand in the "dynamic ticketing" model.

"It was exciting to watch the Giants during the course of the season and watch how the ticket prices reflected that excitement," says Stephen Shapiro, a professor of sports management at Old Dominion University who studies dynamic ticketing.

Lots of things can affect demand for ticket to a particular game. Weather. The fortunes of the team. The opposing team's performance. Particular popular players, especially if there are all-stars that are performing particularly well. 

"As we get into the dog days of August, a team might be completely out of the playoffs and that will lower the demand versus a team which is still in the playoff race and has a chance to make the playoffs," Shapiro explains. 

The Giants reported increased revenue of 7 percent through the use of dynamic ticket pricing during the 2010 season, and it's now taking hold in other professional sports.

On the surface, the Caps' recent announcement about dynamic ticketing sounds counter-intuitive: why would the management of a sports team want prices to sometimes go below the norm?

"The goal is to have a full stadium," Shapiro says. "By dynamically pricing the tickets and dropping the tickets in low demand situations, you're going to attract more fans. And getting them into the stadium is going to make the stadium look more full."

Once inside, those fans spend money. They may have to pay for parking, or they might buy a t-shirt. They're likely to purchase a hot dog, beer or some other kind of concession.

"It can be more valuable to drop a ticket price if they're going to spend more money once they're there," Shapiro says. 

NPR

Professional Wrestling World Mourns Longtime Star 'Rowdy' Roddy Piper

The Canadian entered the WWF as a villain and fought Hulk Hogan and Mr. T in the first Wrestlemania event. The career gave the often-bekilted grappler many chances to show off his bagpipe skills.
WAMU 88.5

Donald Trump Sues Chef José Andrés Over Hotel Pullout

Trump has filed a $10 million breach-of-contract lawsuit against Chef José Andrés and his companies after Andrés announced that he's canceling plans to have a restaurant inside Trump's Old Post Office hotel in downtown D.C.
NPR

Pacific Trade Pact In Limbo As Talks End Without A Deal

Disagreements remain among the 12 countries regarding drug patents, market access and more, and likely will delay congressional debate of any eventual agreement into 2016.
NPR

Despite Host Controversy, Amazon Takes A Chance On 'Top Gear'

The trio that made Top Gear the world's biggest car show will return to the small screen in a new show for Amazon Prime. The BBC canned one of its hosts last year after a fight with a producer.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.