by Joe Lemire
http://vault.sportsillustrated.cnn.com/vault/article/magazine/MAG1151990/index.htm
This article wrote by Joe Lemire, discusses how a game where the reigning Cy Young pitcher against a rival team is far more appealing than seeing a no name pitcher play against the last place Pirates, though the price of tickets to those games cost the same. That is until this year.
As the article states, variable pricing is not new; teams continually charge more for marquee matchups. The Giants are the first professional franchise to take it a step further and institute "dynamic ticket pricing." For every game at AT&T Park, the Giants home, 2,000 upper deck beyond the outfield tickets will fluctuate daily depending on the perceived demand for the seats.
The concept was first developed by qcue, a company founded by two University of Texas students. The formula takes 20 variables - including the day, opponent, scheduled starters, and weather forecast - into consideration. The starting value ranges from $7-$30, and the price will move by increments of 50 cents. Selling an extra 2,000 tickets for $5 to 81 games would mean $810,000 in additional revenue.
Overall, I feel that this is a great idea for an organization to generate additional revenue. As a consumer, I am a bit skeptical, just because I don't want to pay an outrageous amount for a ticket. I am anxious to see where this goes in the future, whether it is a successful or not and whether or not more teams adopt the idea.
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