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BTO2017 | TEN - Smart Pricer - Franz Blechschmidt

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Day TWO BTO2017 | TEN
Giovedì 30 novembre
FOCUS Hall

There is always a second chance

https://www.buytourismonline.com

Keynote Speaker
Franz Blechschmidt Smart Pricer

Talkback
Lorenzo Lopez Box Office
Mariangela Gabriele Maggio Musicale Fiorentino

Moderator
Emanuele Mansueti Ars Hotels

Published in: Travel
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BTO2017 | TEN - Smart Pricer - Franz Blechschmidt

  1. 1. Intelligent Pricing to increase sales and revenues Berlin, 2017
  2. 2. › 2 (C) 2017 Smart Pricer GmbH – Confidential How many years are between the statements? „Any object is worth what a customer is willing to pay for it“ “We have to start pricing the house to match the market […]” Livenation CEO Michael Rapino 2016 n. Chr. Syrus Latin Writer 50 v. Chr.
  3. 3. › 3 (C) 2017 Smart Pricer GmbH – Confidential Daily we are surrounded by prices and prices changes
  4. 4. › 4 (C) 2017 Smart Pricer GmbH – Confidential …even in industries that might not be directly obvious – we introduce flexible pricing systems
  5. 5. › 5 (C) 2017 Smart Pricer GmbH – Confidential Over time all fixed capacity and variable demand businesses introduced real-time dynamic pricing as a central sales mechanism Airlines Hotels DE & EU Sport/ Entertainment   US Sport GETTING STARTED All of these industries already do real-time dynamic pricing…. …now following Fixed capacity Variable demand + = Dynamic pricing
  6. 6. › 6 (C) 2017 Smart Pricer GmbH – Confidential Across all our projects ticketing managers have 3 common goals Increase Revenue Actively manage capacity Data collection + usage
  7. 7. › 7 (C) 2017 Smart Pricer GmbH – Confidential Show Case – The successfull introduction of Smart Pricer‘s dynamic pricing service at Hertha BSC Data Analytics 1 •Data feed to Smart Pricer Service •Pre-Check/ Simulation of data and results Pricing Strategy 2 •Set Up Pricing strategy together with client (Workshop) Thomas E. Herrich Board of Directors, Hertha BSC ’The results of the Smart Pricer Software convinced us. We are pleased to use their dynamic pricing solution in the entire stadium.’ Customer Communication 3 •Adjust Fan communication Three steps to get started B
  8. 8. › 8 (C) 2017 Smart Pricer GmbH – Confidential We feed all ticketing data into our data models to increase visibilty Block-Performance- Score Price-Point-Distribution Willingness to pay 3D Heatmaps Ticketing structure M T W T F S S M T W T F S S vs. 3D Plot 3 Years Tickets SalesData 1
  9. 9. › 9 (C) 2017 Smart Pricer GmbH – Confidential In the second step - we set up the pricing strategy together with the client… 2 Price Range 12,20 13,50 12,20 25,20 21,90 23,80 40,00 PK7 PK8 17,90 PK3 35,60 29,90 PK2 PK9 22,10 PK1 21,90 Price Price Strategy Time Price
  10. 10. › 10 (C) 2017 Smart Pricer GmbH – Confidential …and adjust the customer communication to be fair with fans3 from from from from from from from from  „Buy early buy smart“  Communicate actively the price model to the loyal fans  Provide FAQ on webpage and box offices Active Customer Communication
  11. 11. › 11 (C) 2017 Smart Pricer GmbH – Confidential After one year live operations, we can see the following results… Before After ~300‘000 Tickets ~300‘000 Tickets +7% Uplift
  12. 12. › 12 (C) 2017 Smart Pricer GmbH – Confidential • ATP: increased between +2 – 10% at all all games • Online Share: more than + 5 Pp improved • Attendance: load factors remain constant • NPS and customer reaction: Good-Neutral fan acceptance • Employee acceptance: Good acceptance and feedback Performance summary of dynamic pricing at Hertha BSC after a full season
  13. 13. › 13 (C) 2017 Smart Pricer GmbH – Confidential Who‘s moving next? Static Dynamic per segment Dynamic per customer Where is your industry? How could you make your pricing more dynamic? “Right price at right time for each segment” “Right price and product at right time for each customer” “One-size fits all” Image source : Unsplash.com
  14. 14. › 14 (C) 2017 Smart Pricer GmbH – Confidential EUROPE‘S LEADING TICKET PRICING COMPANY DATA SCIENCE MEETS TICKETING Smart Pricer Projects Smart Pricer
  15. 15. › 15 (C) 2017 Smart Pricer GmbH – Confidential Why Smart Pricer? High quality analysis Our team has worked at top-tier management consultancies like McKinsey and Lufthansa Consulting. We apply the same quality standard to our work as these companies. The focus is on facts and actionfromle insights. Excellent knowledge fromout pricing We focus 100% on pricing. We have a total of +10 years professional experience from numerous roles in managing products and prices. This background combined with previous pricing optimization projects in various B2C industries give us the context to have a deep understanding of pricing. Long-term relationship and big data solutions We aim to develop long-term relationships with our customers. On top of developing new concepts, we actively support their implementation and have the IT tools at hand to automate pricing decisions using big data analytics.
  16. 16. › 16 (C) 2017 Smart Pricer GmbH – Confidential Restricted Back Up CONFIDENTIAL AND NOT TO BE DISTRIBUTED / SHARED
  17. 17. › 17 (C) 2017 Smart Pricer GmbH – Confidential Secondary market data on the example of Arena di Verona • Oberservation: 24.08. – 26.11.2017 / leading 2nd market plattform in Italy 799.106 335.297Market volume (€) Offered tickets 4.466 1.805 Avg. ticket price (€) 179 186 Events 64 48 Total 2018 Already a substantial amount of tickets offered for 2018 Source: http://www.arena.it/arena/it/pages/biglietti-ridotti-spettacoli-arena-di-verona.html
  18. 18. › 18 (C) 2017 Smart Pricer GmbH – Confidential There is a strong development over the season and many different price points are offered • Observation data: 24.08. – 26.11.2017 0 300 600 900 1200 1500 (0,50] (50,100] (100,150] (150,200] (200,250] (250,300] (300,350] (350,400] >400 Ticket price (€) 0 400 800 1200 1600 2000 Offered tickets Average ticket price (€) • All price points are offered • Decrease of tickets to the end of the season • sharp increase with the start of presales for next year
  19. 19. › 19 (C) 2017 Smart Pricer GmbH – Confidential New Listings und De-Listings Automatic optimization Anzahl Tickets -50 -40 -30 -20 -10 0 10 20 30 40 50 6/30/2016 8/31/2016 10/31/2016 12/31/2016 2/28/2017 new_listing_ids deleted_ids Constant optimization
  20. 20. › 20 (C) 2017 Smart Pricer GmbH – Confidential Let us look into the dynamic of a single event Average ticket price (€) • Example event: Intimissimi On Ice - Verona • Oberservation: 24.08. – 06.10.2017 (event date) 0 10 20 30 40 50 60 70 80 90 100 (0,50] (50,100] (100,150] (150,200] (200,250] (250,300] (300,350] (350,400] >400 Market volume: 47.277 € Offered tickets: 245 Average ticket price: 193 € Unique listings: 57
  21. 21. › 21 (C) 2017 Smart Pricer GmbH – Confidential Analysis of ticket movement Average ticket price (€)Offered tickets Slowly decreasing ticket prices over time Slow increase of offered tickets over time with sharp drop to the end 120 140 160 180 200 220 240 260 8/24/17 8/26/17 8/28/17 8/30/17 9/1/17 9/3/17 9/5/17 9/7/17 9/9/17 9/11/17 9/13/17 9/15/17 9/17/17 9/19/17 9/21/17 9/23/17 9/25/17 9/27/17 9/29/17 10/1/17 10/3/17 10/5/17 0 20 40 60 80 100 120 140 160 8/24/17 8/31/17 9/7/17 9/14/17 9/21/17 9/28/17 10/5/17 • Example event: Intimissimi On Ice - Verona • Oberservation: 24.08. – 06.10.2017 (event date)

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