Secondary Ticket Market Case Study Example | Topics and Well Written Essays - 750 words

Secondary Ticket Market - Case Study Example There are many sports admiration officers who do not think in terms of profit and loss of revenue only. They evaluate the possibility of secondary ticket market from an ethical perspective. They don’t like to endorse organizations that would resell tickets at higher prices. It is one thing to let the secondary market operate and quite another telling the fans that ‘the teams have run out of tickets but if they are interested they can buy the ticket at three times the face value from their partners’. Analysis and Evaluation of Alternatives Despite offering problems, secondary ticket market also serves as an indicator for setting ticket prices. The sports officials can use secondary market data to tweak their ticket prices to maximize profits. Another benefit is the teams who engage with the secondary ticket market can redistribute full or partial plan holders. This is important because according to an estimate 20% of the ticket holders never show up at the game ind icating a loss on the revenue. To keep the tickets from being wasted the team administration can avail the opportunity in secondary ticket market that lets the fans exchange ticket they are not planning to use. As an example the San Francisco Giants implemented this plan the first and they reduced the non-use of tickets by 50%. Evaluation of Case Secondary ticket market offers its own pros and cons. Some teams saw the potential and the benefits it offered so they started to build partnerships with ticket sellers such as StubHub, RazorGator and Ticketmaster to make the exchanges between buyer and seller as secure as possible. NFL, after some resistance, also came to terms with Ticketmaster. The deal allowed Ticketmaster to create a website similar to NFL where buyers and sellers of tickets meet. The case evaluation suggests many possible options however, from the discussion and the interviews in the case it is apparent that business philosophies move from top to bottom; one doesnâ₠¬â„¢t just change the whole model of their business based on an opportunity. As the case suggests that after the internet boom it is almost impossible to foresee who ends up with the original ticket. Some of the teams have such a low inventory that when brokers buy the tickets the primary market becomes nonexistent. The teams at NFL face the dilemma where they have to decide whether to capture the whole of their respective secondary market share and damage their relation with the public or endorse the secondary market, enjoy the additional revenues. There cannot be any hard and fast rule regarding ticket reselling or the concept of secondary market. For some teams and their fans the availability of an unregulated secondary ticket market might be the best thing that could happen. For instance the teams who don’t like the idea of tweaking their ticket prices to a great degree and are alright with the negative publicity brought down by the image of reselling tickets at a premium , they can benefit in more than one way by participating in an open secondary market. They will get additional revenue that they can pour into their operations. The benefits go beyond monitory measurements. The ability to resell tickets is also a great way to retain season ticket holders. The opposite of this opportunity can be devastating at so many levels. If a season ticket holder cannot resell tickets there is a direct loss of revenue and the customer. More importantly if