Technology has changed the way sports teams view ticket scalping. Now that they can get in on the act, scalping isn't the pariah it once was. Technology is also changing the way at least one MLB team is setting its ticket prices.
Qcue LLC, founded in 2007, completed a season-long behind-the-scenes trial with the San Francisco Giants this year. Next season, the company plans to provide its application that, during the days leading up to a ball game, adjusts the cost of single-game tickets based on 20 variables that affect demand, such as the weather and the opposing team’s record.
The so-called dynamic pricing, which would be applied to 2,000 slow-selling seats, puts the Giants in position to be the first Major League Baseball team to implement such an automated pricing system.
And the six-person Austin company is in the thick of things by changing the 132-year MLB practice of setting seat prices before the season starts. The success of the practice will depend on fan reaction, CEO Barry Kahn said.
Here's an earlier TSE post I wrote on this subject.
It wasn't all that long ago that any type of variable pricing in MLB was discouraged by the league office. The thought was that MLB didn't want to acknowledge the fact that different teams have different values to fans. But that type of policy leaves a lot of cash "on the table," so to speak.
HT to Chris Kaufmann.