Reserve x

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Reserve x

  1. 1. Event Ticketing & Location Based Services September 14, 2010
  2. 2. Agenda Case Study: How is the Ticketing Industry utilizing LBS to Increase Venue Profitability • Discover how ReserveX is harnessing location relevance to sell event tickets and drive revenues • Examine why building key partnerships is integral to ReserveX's business model • Utilize revenue management techniques with location to add value to both brands and users
  3. 3. Introduction Kelly Tompkins Pioneer in the development of various online travel and transaction based services over the last 15 years including: • Development of Sabre WebReservations • Assisted United Airlines in developing E-Fares • Founded LeisureLink – The first global vacation rental reservation network • Founded AdventureLink, the largest aggregator of adventure travel • ReserveX Founder & CEO – mobile event ticketing and revenue management platform
  4. 4. Event Ticketing Challenges • 80% of shows do not sell out and approximately 40% of all tickets go unsold (Source: Michael Rapino, CEO Live Nation - Brand Week, June 2, 2010) • Estimated annual ticket revenue for unsold tickets represents $6.7 billion (Source: ReserveX estimate) • Live Nation revenues were down 9% ($822m) for the first 6 months and could be down as much as 15% for the second half of 2010 (Source: Michael Rapino, CEO Live Nation - CNBC Interview, July 16, 2010) • Downward pressure on margins is forcing the ticketing industry to streamline costs & become more savvy marketers
  5. 5. Revenue Management Explained • Revenue management, is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue from a fixed, perishable resource. • It is a disciplined process for achieving profitable growth by assuring that the right products are sold: • To the right customer • Through the right channel • At the right time • At the right price • Robert Crandall former Chairman of American Airlines called revenue management "the single most important technical development since deregulation.”
  6. 6. Industry Comparison Travel Industry Event Ticketing Industry • Airlines operate on an • Live Nation’s operating average operating margin of margin is 2.6% (Source: Investors.com, August 20, 2010) 4.6% (Source: Aviation Blog - July 22, 2010) • Hotels average operating • Ticketmaster’s operating margin is 7.5% (Source: ReserveX margin is 5.8% down from Estimate) 6.05% in 2009 (Source: Q4, 2009 Ticketmaster financials) • Airline load factor and hotel • The event ticketing industry RevPar (revenue per has no comparative tools for available room) are the maximizing venue revenues critical tools for determining yield and maintaining profitability
  7. 7. How Revenue Management Works (1) Dynamic UAL Flight # 0101 – ORD / LAX UAL Flight # 0101 – ORD / LAX Pricing Load Factor = 68% Time Check 12pm Check 12am Load Factor = 70% (Avg. 72.1%)9am Time 6pm (2) Customer First Business Frequent Segmentation Economy Class Travelers Flyer’s (3) Distribution Airline Travel Online Opaque Tour Operators Web Agents Travel Channels & Sites Agents Consolidators
  8. 8. The ReserveX Solution 1. Aggregate Data Feed – A powerful technology switch connecting suppliers to distributors that delivers standardized data feeds for integrating event ticketing with Web sites and Smartphone applications. 2. Ease of Use – A consumer friendly, comprehensive interface for purchasing event tickets. 3. Promotional Targeting – ReserveX’s SeatAgentTM technology delivers targeted promotions to a large audience, using location based data. Websites Ticketing System LBS ReserveX Telematic Venues Pubs & Broadcasters
  9. 9. ReserveX Distribution ReserveX is targeting a broad range of affiliate distribution partners that delivers new revenues and valuable location data for revenue management targeting. Mobile Telematic Providers Providers Publications / Web Affiliates Broadcasters Location Based Services
  10. 10. ReserveX Revenue Management TARGET AUDIENCE • Individual Ticket Purchasers • Family • V.I.P. Customers LOCATION FREQUENCY Locate consumers •All Channels within specific •Send to all users geographical areas •Infrequent users The right PROMOTION •Frequent users promotion, to the TYPE right consumer, at •Discount the right time! •Package Incentive
  11. 11. The Consumer Experience Proprietary & Confidential 11
  12. 12. Sample Scenario – Staples Center Seating Capacity: 19,000 Total Annual # of Tickets Available: 3MM # Unsold Tickets: 1.2MM Total Unsold Tickets Converted Annually: 302K Incremental Ticket Revenue Generated: $10.5MM LA Metro Area LBS Incremental Onsite Revenue Generated: $5.4MM Audience Reach via Distribution Partners: Total Incremental Revenue Generated: $15.9MM 1.5MM
  13. 13. Conclusion • Location data makes it easier for consumers to find entertainment options, while giving the event ticketing industry a powerful tool for addressing the $6b in unsold tickets. • Nearly 15 billion tickets will be delivered to subscribers' mobile devices worldwide by 2014 (Jupiter Research: Mobile Ticketing Applications & Markets - Transport, Sport & Entertainment 2009-2014) • Location data drives the ReserveX’s SeatAgent™ system for delivering targeted promotions to precise target audiences • ReserveX will launch this fall and is currently signing up affiliate partners!
  14. 14. Thank you! Kelly Tompkins – CEO & Founder Email. Kelly.tompkins@reservex.com Tel. (626) 408-2034 www.reservex.com

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