The Price Is Right Now for UM Football
Thursday, August 15, 2013
Crain's Detroit Business (07/07/13) Shea, Bill
The University of Michigan's new dynamic pricing system for single-game football tickets could generate more than $1 million in new revenue. Michigan is the first major college athletics department to adopt dynamic pricing, in which prices for single-game tickets fluctuate based on real-time market demand. Season tickets, student tickets, and multi-game ticket packages will not be affected. The dynamic-pricing software uses team records, weather forecasts, seat location, historic demand, resale market prices, and remaining inventory to price single-game tickets. Professional sports started to use dynamic pricing, originated in the hotel and airline industries, in the mid 2000s. Single-game tickets will never fall below the $65 per-game season ticket price, and fewer than 10,000 seats per game will be available for single purchase. Games that sell out quickly, like those against Notre Dame and Ohio State, will likely start at $195 and $175 per ticket, respectively. If the dynamic pricing system works well for football games, Michigan also may use it for men's basketball games in the future. TiqIQ CEO Jesse Lawrence says dynamic pricing is being used to boost revenue. "It's been a revenue maximization tool, not a butts-in-seats tool," Lawrence says. "It's not like Michigan is going to be sitting there with unsold tickets."
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