Dynamic Pricing In U.S. Soccer Tournaments: A Business Analytics Perspective On Revenue Management
This conceptual paper analyzes the use of dynamic pricing in soccer competitions in the United States, emphasizing the role of business analytics in enabling data-driven ticket pricing methods. Based on economic, marketing, and sports management perspectives, we identify a gap in the literature about dynamic pricing in soccer events, which have traditionally depended on static pricing models. Our research examines how dynamic ticket pricing might enhance income and attendance for soccer competitions while ensuring fairness for fans. Our research reveals that dynamic pricing enables organizers to maximize revenue from high-demand matches by increasing ticket prices to align with real-time market value and to enhance attendance for low-demand matches by strategically reducing prices and providing discounts. These modifications are facilitated by business analytics, encompassing demand forecasts and price optimization algorithms, which guarantee that current data informs pricing decisions on consumer willingness to pay. Our analysis emphasizes that dynamic pricing in sports functions not merely as a mechanism for price augmentation but may also augment consumer value and accessibility, as demonstrated by its capacity to lower ticket prices when warranted. Drawing on existing literature, the paper provides a theoretical framework and practical recommendations, highlighting areas for future empirical research. We offer practical insights into the implementation of dynamic pricing in soccer, emphasizing the significance of analytical models, effective stakeholder engagement, and policy considerations to balance revenue objectives with fan experience. These findings enhance sports management literature by applying dynamic pricing theory to U.S. soccer and providing a framework for utilizing business analytics in the optimization of sports revenue.
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