Is auctioning the best way to eliminate unsold seats

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Reference no: EM132293357

If you've ever tried to to get tickets for a game, show, or concert that ended up being sold out, you may be surprised to find that as many as 40 percent of seats for many such events actually go unsold. Although the live-event business earns an estimated $22 billion a year in the United States, high prices keep many people away from arenas and concert halls. Now, however, a fast growing Los Angeles - based company called ScoreBig lets consumers bid on hundreds of thousands of those unsold seats. Consumers can make an offer for the event of their choice in much the same way that PriceLine auctions hotel rooms and airline tickets.

ScoreBig operates a website through which visitors can bid on upcoming events. the company lists events with excess inventories of seats and invites customers to bid for the chance to pay at least 10 percent less and sometimes as much as 60 percent less than the original price, often within a seating area of their choice. The company provides a ballpark price for bidders. If the price is accepted, a confirming email is sent immediately and the customer prints out the ticket. The average savings is 42 percent, and because ScoreBig deals directly with event promoters, there are no fees or handling charges.

The company's unique pricing algorithms help maximize attendance and revenues for its entertainment partners, while helping them protect their brands. ScoreBig's business strategy also helps its partners retain the integrity of its sales channel for full-price tickets while filling empty seats for live entertainment events.

Is auctioning the best way to eliminate unsold seats? Why or why not?

Reference no: EM132293357

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