London 2012 Olympic Games Case
1. The core problem or issue in the case
The core issue in this case is the “tradeoff decision between revenue generation and attendance”. Further, we can say that these issues are problematic like:
* Maximizing ticket revenue without charging high price for it.
* Peoples’ willingness to pay for specific event
* Appeal of the sport (global and local)
* Stage events (opening and closing ceremonies)
* Particular team or athlete
* Limited guidance for pricing tickets from past events.
* Every city’s taste and preferences matter
* Reach of the games by location
* Internet ticketing
* Recent ...view middle of the document...
III. Filling the seats with the right people which mean knowledgeable fans who added to the energy and atmosphere of the event.
IV. As we know that these games are “Everybody’s Games”, so accessibility to common Londoner, who lives around the corner from the Olympic Park.
According to the LOCOG’s motive of making it “Everybody’s Game” Williamson should go for option of increasing attendance by lowering prices for ticket as the success of these is a prestige issue for the hosting country as well as for the game’s legacy.
3. How might his pricing strategies vary by sport? To do this focus on swimming, indoor track cycling and table tennis.
The pricing strategy to be followed by Paul should be the following according to the classes of events/sport:
1) BIG FOUR
It includes the sport like swimming, artistic gymnastics, athletics, and opening ceremonies. These all together contribute for 40% of overall revenue therefore second degree price discrimination strategy is viable for this situation. It will follow from finals to preliminary rounds, by posting discrete schedule of declining prices for different rounds of sport. In this way consumer surplus can be exploited completely.
As we understand from the case that it is the most famous sport in the Europe and it contributes for 10% of the revenue. The committee can exploit maximum consumer surplus for the sport as the demand exceeds supply. It can be done by following the pricing strategy of peak load pricing,...