In addition to the hospitality industry, revenue management is also an essential business technique in entertainment. Revenue management helps theaters and venues maximize profitability to achieve their business goals.
Revenue management in the entertainment industry is complex, often needing a variety of technologies such as automation, artificial intelligence, advanced machine learning, and mores.
In addition, revenue management in entertainment also involves the analysis of various factors, including:
Understanding the importance of revenue management in the entertainment industry is critical to helping business leaders make informed decisions and ensure the generated revenue is more than enough for the business. Continue reading this guide to dive deeper into how revenue management software works in theaters and events.
Revenue management in the entertainment industry refers to selling the right event or theater ticket to the right customer at an optimal price. Business leaders must set prices according to customers’ willingness to pay.
Aside from understanding how your business works, there should also be a balance between your company's needs and your customers’ wants and perceptions of what you offer.
Let’s talk about the main significance of revenue management in the entertainment industry to leverage revenue growth and maximize profitability.
Entertainment industry revenue management can provide a seamless buying experience for consumers looking for tickets. It also ensures your company’s customer service teams are prompt and quick to respond to inquiries and concerns.
It’s no surprise that revenue management requires thorough research, and doing this will help you better understand and consider the expectations of your target market. This means modifying your ticket prices, schedule, and other services that cater to your consumers' needs is easier.
For instance, in 2015, the popular frontman and face of the band Blink 182 Tom Delonge exited the band in favor of personal projects. To replace him, the bank recruited Matt Skiba, the lead singer for another similar band called Alkaline Trio. This information is significant because back in 2016, tickets to see Blink 182 were anywhere from $22 to $70 USD—a significant difference from today’s prices of over $700 for front-row seats. This example highlights how entertainment venues must research and adjust prices accordingly—in this case, knowing the history of the band and the significance of the frontman’s return had a measurable impact on ticket prices. Thankfully, dynamic pricing tools like HouseCount RMS can make managing and setting prices significantly easier through automated and real-time pricing adjustments
Competition is consistently increasing in the entertainment industry, so you must be wiser in setting prices that will give your company a competitive edge. And with the right prices, you can guarantee to win more customers, increasing your company’s profitability.
Another important advantage of revenue management in the entertainment industry is customer segmentation to gain better insights into your target market. Your company must also look into up-and-coming market segments that can possibly become part of your audience.
Media companies can leverage customer segmentation by making:
This increases your company’s engagement to deliver more compelling and relevant experiences, improving your revenue.
Most revenue management software leverages AI and advanced machine learning, reducing repetitive workload on your staff. This frees up their available resources, allocating more time to focus on other relevant tasks to achieve company goals.
Automation tools can also assist with content generation, curation, and distribution, enabling media companies to produce more content quickly and reach a wider audience.
Appropriate integration of the best hotel tech tools is what companies need to achieve revenue goals and make more accurate decisions. Technology can streamline content creation, editing, and distribution processes, reducing production time and costs and allowing more content to be produced and published, potentially attracting a larger audience and increasing ad revenue.
Thanks to digitization, over 71% of ticket purchases in theater, performing arts venues, and events are now made online. This significantly speeds up administrative processes and provides seamless transaction experiences for consumers.
More importantly, event organization can be time-consuming because there are various factors you must consider and address. With the right venue management software, you can guarantee to consider all the essential details for upcoming shows, events, and more.
The key benefit of using venue management software is streamlining event planning and schedules, allowing companies to manage the following aspects:
Let’s talk about the other benefits of leveraging this software below.
Event organization consists of various components. With reliable venue management software, you can rely on this tech tool to serve as the centralized platform to manage all event-related tasks for your convenience.
Event organizers can use the platform to look into a unified interface, regardless of whether the event is in-person or virtual. The software can perform various activities, including:
The centralized platform also promotes team collaboration, allowing team members to communicate and work together for improved overall project management.
Venue management software offers event organizers a straightforward and efficient means of gathering and overseeing event-related data. By utilizing mobile applications, online registration forms, and badge scanners, attendees can easily register, check-in, and actively participate in the event or pay for the show’s ticket prices.
Additionally, the platform aids organizers by furnishing them with advanced registration data and facilitating the collection of feedback from attendees through surveys and live polls.
With venue management software, gathering data would be easier and more convenient. Data would likely be scattered across different platforms, rendering analysis and deriving meaningful insights a challenging task.
The process of event organization encompasses several tasks, from managing registrations and email correspondence to handling data input. These aspects demand time and meticulous attention to detail, posing a challenge in ensuring the smooth progression of the event or the show.
Venue management software that leverages automation can enhance the efficiency and uniformity of event planning and execution, ultimately resulting in an improved experience for organizers and attendees.
Capterra reveals that 40% of the respondents in a recent survey are dissatisfied with their current event revenue management software because the features were lacking.
Investing in theater and events revenue management software is only the first step. Choosing the best one that suits your company's goals and needs is a new responsibility.
As business leaders, you must carefully research the best features that can significantly benefit your company, profitability, and revenue growth. Here are the top features to look for in the software.
|
Revenue Management Software Must-Have |
Reason |
|
Database and Budget Management |
Keeps all essential information for easier access anytime and anywhere |
|
On-site functionality |
Gives employees control in case of necessary changes |
|
Dynamic Registration |
Creates personalized registration process to make the experience hassle-free |
|
Reporting and Analytics |
Carefully plan out strategies to know what works and what does not |
|
Event Marketing |
Engage with your target market better |
Revenue management software for theaters and events simplifies budget management, enabling you to monitor your business finances effectively. It provides the flexibility to reevaluate expenses at each stage of event planning. Furthermore, you can oversee deals, and transactions, store detailed records, manage invoices, and maintain control.
Revenue management software should also analyze and understand data gathered from various processes such as registration, industry analysis, and guest acquisition. This, in turn, empowers you to generate mailing lists, on-site guest rosters, or event schedules.
Theaters and events are centered on the functionality and user-friendliness of the revenue management software. The platform should effortlessly oversee meetings, compile attendee lists, or promptly update social media content.
Additionally, the software should empower you to generate real-time reports, providing your staff with heightened control over circumstances. Within these reports, key details, such as attendee counts, schedules, and revenue figures, should be easily accessible.
With all data consolidated in a single location, managing guest arrivals and monitoring attendees becomes more straightforward. The ability to print essential documents like brochures, agendas, badges, and labels directly from the database should be readily available to improve information flow.
Today, events are either hybrid, in-person, or virtual. These differences must allow event organizers to leverage the software and diversify the experiences consumers need. For instance, specific attendees may prefer an in-person event encounter, while others opt for virtual participation.
Similarly, preferences for ticket types can vary, with some seeking general admission while others prefer the VIP experience. Top-tier revenue management solutions must provide the capability to tailor the registration process, enabling guests to select the option that best suits their needs.
Highly impactful event professionals consistently engage in data analysis for continuous improvement and enhancement. Investing in a revenue management solution that provides robust reporting and analytics features is imperative.
It empowers businesses to dissect data in various ways to discern effective strategies from ineffective ones and chart a well-informed path forward.
The software should also feature a tool to streamline the promotion process. It should offer the capability to centralize the management of all your campaigns across various platforms:
To ensure the success of promotional campaigns, establishing an online community is essential. The software must provide individuals with a platform for communication, allowing them to exchange experiences and memories, building a deeper connection with your event.
You can share videos, disseminate newsletters and updates to all participants, and establish a knowledge hub to expand your reach and create a community around the event. Consider creating and distributing discounts and coupons for loyal customers and attendees to attract a larger audience.
With a wide selection of revenue management software providers for events and theater, it can totally be overwhelming to choose one that works.
Here are helpful tips and considerations you must remember.
What are the requirements of your upcoming event or show? Everything must be clear before investing in the software you need. All your team members must understand why you need the platform and how it will help improve your workflow and efficiency.
Pricing is one of the key factors across various industries, including in theaters and events. Know your available resources and research different pricing plans of several platforms. Look for the software solution with all the features you need at a reasonable price point.
Know whether your preferred software complies with important regulations and data privacy rules. This does not only protect your business but also the personal information of your target market.
Moreover, ensuring the software complies with such data protection and regulations prevents your company from encountering lawsuits and hefty penalties.
Consider choosing software that can provide a customizable website and convenient mobile app for your upcoming event or show.
The website or application must allow personalization of the registration page based on your target audience. This proves particularly useful when your audience segments are distinct and you prefer to restrict their access to specific information.
A reliable revenue management software solution for theater and events should have a user-friendly interface. Everyone, including yourself, your attendees, or your customers, requires a straightforward platform that allows easy navigation and comprehension.
It's unrealistic to anticipate that your users will seek technical support every time they visit your website or registration page.
Dynamic pricing and revenue management go hand-in-hand in most industries, including travel, hospitality, e-commerce, and entertainment. The success of each of these two aspects can help establish optimized pricing and revenue strategies for your company’s overall growth.
Dynamic pricing adjusts prices based on market factors. Revenue management focuses on revenue optimization by making pricing decisions based on historical data, forecasts, and future demand expectations. Together, both principles establish flexible and responsive pricing considering market conditions and long-term strategies.
Both dynamic pricing and revenue management rely on customer segmentation. Dynamic pricing tailors prices to the preferences and willingness to pay of different customer groups. Revenue management allocates resources to high-value customer segments to optimize revenue.
Dynamic pricing is also essential in balancing real-time supply and demand. When demand is high, prices increase to maximize revenue. Revenue management ensures that the right resources are available at the right time to meet demand, and dynamic pricing ensures that these resources are priced competitively.
Correct implementation of both principles can enhance customer experience. Dynamic pricing ensures that customers get competitive prices, and revenue management ensures that high-value customers receive the best value.
Dynamic pricing transforms how pricing strategies are conceived, executed, and optimized. This results in increased revenue and improved audience experiences.
Dynamic pricing allows theaters and event organizers to adapt ticket prices based on demand. When demand is high, such as for popular shows or events, prices can increase to capture the higher willingness to pay. And during off-peak times, prices can be adjusted downward to stimulate demand. This flexibility maximizes revenue without leaving empty seats.
Dynamic pricing strategies can also segment the audience based on various factors, such as the following:
This enables organizers to personalize pricing for different customer segments to accommodate different budgets and preferences. Personalized offers improve customer satisfaction and increase sales.
The theater and events industry can effectively employ dynamic pricing to implement yield management. By optimizing prices for different performances or venue sections, organizers can ensure that they make the most of their inventory to maximize revenue.
Dynamic pricing can leverage data analytics and machine learning to make informed pricing decisions. Organizers can analyze the following factors to improve pricing strategies based on trends to stay on top of the competition:
Lastly, dynamic pricing promotes flexibility in advertising strategies. Organizers can use discounts and promotions strategically to attract specific audience segments, boost attendance during slow periods, or drive early ticket sales.
HouseCount RMS is one of the leading revenue management software that helps your entertainment venue generates optimal pricing strategies based on real-time demand. It provides the following features for a seamless experience for business leaders.
|
Feature |
Key Point |
|
Multi-property and campus |
Allows you to seamlessly switch between properties, regardless of whether or not they’re on the same PMS system |
|
Real-time property data |
Compiles the best available offers to generate competitive pricing |
|
Fully mobile |
Allows you to work from any location thanks to the ability to access it from any device |
|
Enhanced user experience |
User-friendly interface, providing a seamless and hassle-free experience |
|
Accurate pricing |
Utilizes a Feedback Control system that adapts to real-time supply and demand changes to get you accurate prices |
Using this platform, revenue managers can provide guests with the right price for the right seats in your entertainment venues. This platform runs real-time analysis to ensure that each guest gets prices that are updated in real-time according to market conditions, demand patterns, and customer segments.
What’s more, HouseCount RMS also consistently optimizes prices to ensure the best possible yield using machine learning and algorithms. The result is that you get highly accurate pricing that’s sensitive to customer needs and wants.
HouseCount RMS also allows for inventory pricing that can be adjusted on the fly without any downtime. This means that you can make adjustments even after you’ve already conducted initial set up.
Paired with HouseCount RMS, Luxe Pricing’s dynamic revenue management software solution, LuxeSell makes upselling easier and more effective for your frontline staff, even when you have multiple promotions running at one time.
Picture this scenario. A customer contacts your hotel wanting to book a room in addition to tickets for a concert happening in your venue for their honeymoon. But in addition to the room and the concert, they also want various amenities added, including a bottle of wine waiting in the room upon arrival, and they want a massage, spa day package, dinner, and more to round out their perfect stay.
For your frontline staff, navigating the possible discounts, package deals, and inclusive offers surrounding all of these wants can be difficult and time-consuming if they need to manually look up information within your system. But with LuxeSell, available offers are presented to them automatically—ensuring that the customer gets the right offer at the right time. This not only results in the customer getting the best price for the services they want, but also streamlines the sales process and provides a better customer experience.
Entertainment revenue management is one of the keys to the success of events and organizations. Its main principles include pricing optimization, demand forecasting, and dynamic pricing, which are vital for maximizing revenue, ensuring the best resource allocation, and enhancing the overall customer experience.
As entertainment continues to expand, staying ahead of the competition requires an understanding of market dynamics, constant monitoring of pricing strategies, and the ability to respond to emerging trends.
Luxe Pricing specializes in generating the best dynamic pricing strategies based on changing market demands, historical data, and current competition. Get in touch to schedule a demo.