Does Your Box Office Software Support Yield Management?
In previous posts, we discussed the advantages of ticketing systems that enable assigned seating and the associated pricing strategy of assigning different prices to different seats. Doing so drives substantially more revenue and serves your customers better.
Assigning different prices to different seats is just one dimension of what airlines and other industries like to call yield management – maximizing the number of filled seats at prices people are willing to pay.
There are other dimensions, for example:
- Price by Seats
- Age/Status Pricing
- Time by Pricing
Pricing by Seats
Aldi Catalogue, Aldi Catalogue, Big w Catalogue, Bunnings Catalogue
Time based Pricing
Similarly, providing last minute discounts is a form of maximizing yield through time-based pricing. Suppose the community theatre expected the demand curve shown above, but it turns out that demand is actually less than expected. Here’s where last minute deals such as half-price tickets make sense.Again, we are increasing revenue at the same time as delighting customers. The people who bought last minute at the reduced rate are delighted to be able to go. Meanwhile, the people who paid full price were happy to do so in order to secure their tickets. Your box office software must have the ability to administer these types of discounts.