Setting ticket prices to sports events requires that one hope for the best but prepare for the worst. Teams want prices high enough to cash in if they play well, but need them to be low enough to draw fans if they falter.
The San Francisco Giants are experimenting with a possible solution – software that weighs ticket sales data, weather forecasts, upcoming pitching matchups and other variables to help decide whether the team should raise or lower prices right up until game day.
The Giants are the first major league team to test the software, which some industry analysts say could transform the way teams adjust to the ebb and flow of the season, not unlike how airlines, hotels and rental car companies – which also use dynamic pricing – adjust to changes in the travel industry.
Many teams have various ticket prices for the same seats, altering the dollar amount based on the opponent, the day of the week and the time of the year, but those variations are set before the season and not altered. The Giants, by being more fluid, are taking the concept a step further.
Photo by clix.