This is the same revenue management approach used by hotels, car companies, department stores and hundreds of other industries.
The initial pricing is simply the price to get the first choice in seat location.
UT is not going to sell out the stadium based on the 2022 ticket prices listed. They are also not going to allow seats to go unsold.
Once the initial wave of selling season tickets is completed, the sales staff in the ticket office will approach people who chose not to renew at the new prices and offer them "special deals."
And we'll be right back to where we are now where someone who paid full price will be sitting next to someone who paid half of what they paid and maybe less.
If you want to go to Rosemary Beach for the week of July 4 and stay in the best condo and book it in January you will pay $12K to $15K for the week.
If you wait until the last week in June you can probably find something less desirable at a lower price...unless the demand far exceeds the supply.
The demand for UT football tickets is far less than the supply.
What UT is doing is the right thing in terms of maximizing revenue but the revenue increase will only materialize if demand increases.
The initial pricing is simply the price to get the first choice in seat location.
UT is not going to sell out the stadium based on the 2022 ticket prices listed. They are also not going to allow seats to go unsold.
Once the initial wave of selling season tickets is completed, the sales staff in the ticket office will approach people who chose not to renew at the new prices and offer them "special deals."
And we'll be right back to where we are now where someone who paid full price will be sitting next to someone who paid half of what they paid and maybe less.
If you want to go to Rosemary Beach for the week of July 4 and stay in the best condo and book it in January you will pay $12K to $15K for the week.
If you wait until the last week in June you can probably find something less desirable at a lower price...unless the demand far exceeds the supply.
The demand for UT football tickets is far less than the supply.
What UT is doing is the right thing in terms of maximizing revenue but the revenue increase will only materialize if demand increases.
