Case Studies

Sports Hospitality Provider

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Challenge:

  • Limited sophistication in list price setting for annual sporting events
  • Client suspicion that current pricing was approaching a tipping point for top venue, beyond which inventory could remain unsold
  • Client pressure to increase prices due to venue cost increases, project insights would be used to support venue negotiations

Outcomes:

  • +2.3% (Venue 1), +1.1% (Venue 2), +3.9% (Venue 3) incremental margin
  • Recommended list prices which protect commercial performance, with consideration of customer tipping point risk
  • Sophisticated methodology to assess price sensitivity, with ability to repeat the analysis after next sales cycle
  • Supported client negotiations with venues
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