Innovative ticketing solutions have become increasingly popular in recent years as consumers seek more convenient and personalized ways to purchase tickets for events, transportation, and more. New technology has enabled companies to provide mobile ticketing, dynamic pricing, customizable package deals, and other innovations that aim to improve the ticket-buying experience. However, with any new technology or approach there is often skepticism about whether the promised innovations truly deliver meaningful improvements. Here we will examine some of the key questions around innovative ticketing to understand if the hype is real or exaggerated.
What are some examples of innovative ticketing?
There are a number of ways that companies are innovating with ticketing solutions, including:
- Mobile ticketing – Providing digital tickets that can be accessed via customers’ smartphones rather than paper tickets. This makes tickets easy to access and harder to lose.
- Dynamic pricing – Adjusting ticket prices in real-time based on demand to help maximize revenue.
- Subscription packages – Offering subscribers access to multiple events for an upfront fee. This helps lock-in customer loyalty.
- Personalized recommendations – Using data analytics to provide customized ticket suggestions based on consumers’ preferences and purchase history.
- Secondary market integrations – Partnering with resale marketplaces to give consumers options to safely resell or buy tickets.
- Virtual queuing – Allowing consumers to virtually “wait in line” for high demand tickets and get notified when they have access rather than overload ticketing websites.
Some real world examples include StubHub developing an integrated resale marketplace with partners like MLB and AEG, AXS utilizing dynamic pricing for concerts and shows, and the NYC Broadway industry offering mobile ticketing and virtual queuing to improve access to high demand shows.
Do mobile tickets actually improve convenience?
There are several advantages that mobile ticketing provides over traditional paper tickets when it comes to convenience:
- Easier access – Mobile tickets are stored in customers’ apps and accessible instantly at any time from their smartphones. Paper tickets can be forgotten, lost, or stolen.
- Contactless entry – Mobile tickets can be scanned directly from phones, allowing contactless venue entry without the need to wait in box office lines.
- Quick transfers – Mobile tickets can be easily transferred to friends or resold securely through app features. Transferring paper tickets is more cumbersome.
- Integration with other mobile features – Mobile wallets, maps, calendars and other smartphone features can store tickets and integrate the event into people’s schedules and plans.
However, there are some limitations as well:
- Technology issues – Glitchy apps, compatibility problems across devices, or poor internet connections can hamper mobile ticket convenience.
- Power reliance – Phones running out of battery before an event can prevent access to mobile tickets when needed most.
- Learning curve – Switching from paper to mobile-only ticketing requires consumers to learn new processes and technologies.
Overall most analysis shows significantly higher customer satisfaction with the convenience of mobile ticketing based on easier accessibility and modern features. However, work still needs to be done to smooth out tech issues that can negatively impact convenience.
Are subscription packages and memberships worth it?
Subscription series and membership packages for events or venues provide customers with access to multiple events for an upfront annual or monthly fee. This innovative approach has advantages but also important limitations:
Advantages | Limitations |
---|---|
– Cost savings if you attend multiple events | – Need to attend enough events to justify the cost |
– Priority and early access to tickets | – Less flexibility to pick and choose specific events |
– Locks in customer loyalty | – Can seem expensive upfront before attending initial events |
– More predictable budgeting | – Often nonrefundable if you can’t attend full value |
Studies show memberships increase customer retention and likelihood to recommend a venue. However, consumers say the most important factor is that membership prices are affordable and tiered based on number of events included. Overall if priced right and for avid fans, memberships can provide convenience and savings.
Do dynamic pricing systems actually maximize revenue?
Dynamic pricing means prices fluctuate in real-time based on demand trends. This aims to maximize revenue by capturing customers willing to pay higher prices when demand spikes. It also can help minimize empty seats by offering discounts when demand is slow. The airline and hotel industries commonly use dynamic pricing models. When applied to tickets, there are some key considerations:
- Data analytics are key – Effective algorithms are needed to set optimal price points based on early sales velocity, event type, inventory levels, and other factors.
- Price floors matter – Minimum price caps should be set to avoid excessively steep discounts that erode brand value.
- Transparency is mandatory – Customers need clear messaging that prices are variable and tied to demand.
- Fees/caps on price variability – Limiting how much prices can swing in a single day prevents sticker shock.
Studies of early dynamic pricing models for concerts had mixed results. One problem was the lack of price floors so discounts went too low. However when optimized effectively, variable pricing has increased per ticket revenue 15-30% in some current models. The devil is in the details and execution around finding the optimal balance of maximizing yield while maintaining customer perceptions of fairness.
Can personalized recommendations drive ticket sales?
Many ticketing platforms are now investing in technology to provide personalized recommendations to customers based on their purchase history and other data analytics. The goal is to drive incremental sales by better targeting and matching people with events they will be interested in attending. Some key points on this innovation:
- Algorithms are paramount – The most sophisticated predictive models are needed to generate accurate recommendations and minimize irrelevant suggestions.
- User feedback is essential – Collecting info on which recommendations users engage with versus ignore helps refine the models over time.
- Balancing predictiveness and novelty – An overemphasis on predictiveness based on past behaviors can limit new discovery.
- Timing matters – Prominently displaying smart recommendations early in ticket browsing increases conversion likelihood.
Early data indicates a 10-15% clickthrough rate on personalized recommendations for initial trials, with consumers responding positively to discovering new options tailored to their interests. As the underlying algorithms improve over time, personalized recommendations appear poised to become an impactful innovation.
Is secondary reseller integration beneficial?
To counter unauthorized secondary ticket marketplaces, primary ticket sellers like Ticketmaster are now partnering with approved resale markets like Stubhub to allow customers to conveniently resell or buy secondhand tickets. Here are some potential pros and cons of this integration:
Pros | Cons |
---|---|
– Provides a verified safe resale environment | – Could divert initial sales away from primary tickets |
– More efficiently matches supply and demand | – May increase speculative resale purchases |
– Helps avoid price gouging tactics | – Potential for complicated fee structures |
– Lets primary sellers recapture resale revenue | – Integration complexities take time to perfect |
While secondary market activity will persist regardless, well-structured partnerships that create a transparent resale exchange could be a net positive for both consumers and businesses relative to uncontrolled gray market reselling.
Does virtual queuing live up to the hype?
For high demand events with limited ticket inventory, virtual queue systems promise a fairer and smoother way to manage imbalanced supply and demand. Customers wait in a digital queue and are notified when they gain access to purchase tickets. Key considerations for this innovation include:
- Clear communication – Messaging on queue position, inventory remaining, and estimated wait times sets proper expectations.
- Fairness and access – Virtual queue order should be random, one per customer, and limit bulk purchases to prevent exploitation.
- Convenience factors – Allowing customers to browse site or app while waiting improves experience over waiting on one page.
- Queue synergy – Queues should integrate well with main ticket purchasing workflow after notification.
Well-designed virtual queuing has achieved broad consumer satisfaction by taking the randomness and chaos out of high demand ticket drops. This has allowed fairer access and reduced technical overload issues that plagued earlier approaches. Refinements still continue, but core concept appears very promising.
Conclusion
Innovative ticketing solutions have shown meaningful potential to improve customer experience, drive incremental revenue, and strengthen consumer engagement. However, true impact relies heavily on thoughtful implementation and addressing common pitfalls. Getting the details right is critical. Overall the most successful cases of innovative ticketing have focused on transparency, fairness, and clear consumer messaging around changes. Maintaining these core principles while leveraging technology and data analytics can lead to a win for both businesses and ticket buyers alike.