2012 London Olympics Essay

September 19, 2017 Sports

1 ) What wide trade-off does Williamson face as he thinks about his ticket monetary values? Some of the chief factors that need to be taken into consideration when pricing the tickets and the associated trade-offs that come with each are: •Maximizing Grosss: Per estimation. ticket grosss ( $ 650MM ) history for 21. 5 % of LOCOG’s forecasted budget ( $ 3B ) . Any bead in gross coevals either due to pricing or entire figure of tickets sold ( Revenue = Price/ticket x Quantity ) will add undue emphasis on the staying three pails viz. broadcast grosss and international sponsorships. domestic sponsorships. and licensing fees. It is even questionable whether the other watercourse of grosss have the capableness to do up the shortage due to drop in ticket monetary values gross. The Games were meant to excite the critical economic and societal regeneration of the country environing East London. Part of this transmutation would come during the games with visitants go toing and enabling the local economic system. All this would be possible by pulling people at low-cost but besides at gross maximising monetary values. This indirect gross watercourses were hard to quantify but besides incorrect to pretermit due to the extra gross potential the games had to offer to London and U. K as a whole. •Maximizing Crippled Attendance: Merely maximising ticket grosss entirely was deficient to the success of the London Olympics due to this being pegged “Everybody’s Games” .

If bottom lines were realized with deficiency lustre attending at some of the non-popular sporting events so it would be deemed a failure. Having house full attending at popular featuring events such as swimming and gymnastic exercises was easy but deficient crowd turn-out at wrestle or table tennis would demo ill on the hosts every bit good as demoralize take parting sportswomans and adult females. Determining which had more weight between gross and attending in the success of the games was highly of import. ( i. e. ticket gross marks exceed by $ 50MM but with 70 % attending or ticket gross lags marks by $ 50MM but with 90 % attending ) . Could deficit in ticket grosss be acceptable if “Everybody’s games” had everybody take parting in the events? Weren’t there other options to replace ticket gross coevals? Could differential pricing non irk participants in less-popular featuring events with possible boycott of the games? •Filling seats with the right people: Having tickets being bought by people who have no involvement in go toing the games would demo the LOCOG in really hapless visible radiation when the games with half-empty spheres were
broadcast on Television. It was perfectly necessary that the tickets got distributed to the right persons: Individuals’ who would non merely purchase but besides go to even if it meant go toing some of the low profile featuring events. Besides it was indispensable that tickets distributed to VIPs. and media did non travel to blow. For every place left vacant there may be enough more willing to go to. This issue was difficult to command as the LOCOG couldn’t force any single to go to the games. Bringing in voluntary “seat fillers” . with small cognition of the athletics. to showcase full house locales would work to the hurt of the games as was reported on the Beijing Olympics. Besides it would be worthwhile to affect East London’s citizens in the games by holding them go to and be a portion of the success. But sing the societal strata of the occupants in this country it would be difficult to convert them to purchase tickets at regular monetary values without incentivizing it for them. EU regulations prevented any such particular pricing and in a manner would potentially discourage engagement of the local community.

Ticket handiness: This meant handiness non merely to the elite and the general bulk interested in go toing some of the popular events such as the gap and shutting ceremonials. swimming. gymnastic exercises. etc but besides to the common multitudes. How could an just distribution of tickets be guaranteed by the LOCOG and the same perceived by the populace? The constitution of trust was critical to the game’s success so that the general multitudes did non experience left out to prefer high income paying persons. The other issue was black marketeering. How could the LOCOG in malice of a just distribution of tickets to the multitudes guarantee that a secondary market for tickets did non shore up up? Could something be done to forestall this occurrence in the first topographic point by holding buyer’s names printed on the ticket and doing it non-transferable? Would this be coercing who in a household would hold to go to even if it meant a no-show at the locales?

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2 ) On what dimensions does he necessitate to optimise? Why? Which are less of import? Dimensions necessitating optimisation are:
•Ticket Revenues – Importance Low to Medium
•Event Attendance – Importance High
•Getting athletics friendly and enthusiastic audiences into featuring locales – Importance Medium to High •Making this a truly international event by
guaranting and encouraging visitants from across the Earth easy entree to the games – Importance Medium •Including transit planning and pricing into ticket monetary values – Importance Low to Medium •Security – High

•Fair pricing grades for all 26 featuring events – Importance Medium to High In my sentiment Ticket Revenues would be comparatively less of import as it represented merely 20 % of the entire grosss. Equally long as monetary values were in line with other international featuring events and besides took the general economic system and passing power of the persons in to account tickets would sell. Besides. minimising the user costs associated with go toing the games by including public transit tickets would dulcify the trade farther to non worry about extra costs such as travel. tolls. parking. etc.

3 ) How might Williamson’s pricing schemes vary by athletics? To acquire grip on this job. focal point on three athleticss – swimming. indoor path cycling. and table tennis. How should fine monetary values and monetary value scopes differ across these athleticss?

The games represented athleticss people from varied states. Each had endeavored to be at the top of their athletics and to demo a prejudice in pricing by bear downing more for extremely popular games such as swimming and sports and less for games such as table tennis and fence would direct the incorrect signal non merely to the participants but besides to the audience. Puting such a perceptual experience would be damaging to player’s morale and the good will of the athletics. Besides some of the other considerations that need to be taken into history when repairing ticket monetary values and monetary value scopes across different athleticss are: •The continuance of the games

•The figure of events per game
•The location and seating capacity of the locales
•Distance and transit options between locales
•Non-sporting events happening in between events to maintain visitants glued to the locales •The popularity of the athletics based on the host states past public presentation and success •The host city’s gustatory sensations. civilization and ambiance

•The propinquity of the games to international visitants and their states past public presentation and success •Online ticket purchasing
•Tier based pricing at featuring events
•Global economic crisis and ability of people to pass
Concentrating on three athleticss – swimming. indoor path cycling. and table tennis: Table 3. 1: U. K Olympic Track Record
SportGold Medal EventsTickets AvailablePast Medal Success of UKSuccess % ( 3 decorations per event ) Popularity based on past public presentation
Swimming34185. 0001010/ ( 34*3 )
=10 % 2
Indoor Track Cycling1028. 0002020/ ( 10*3 )
=66 % 1
Table Tennis485. 000NANANA

Based on the stats in table 3. 1. though swimming has the maximal figure of events and the maximal figure of tickets available. U. K. ’s past win record is merely 10 % as against 66 % in indoor cycling with far fewer seats available for witnesss. No information in the instance related to table tennis win record. With this in head. merely entirely based off of U. K. citizen’s involvement. indoor path cycling will be the most popular event to go to and with merely 28. 000 tickets available will be selling speedy. Depending upon the environing EU states and their past public presentation in any of the above games. swimming might besides pull sensible involvement but this is augmented by the larger figure of tickets available.

I have considered the Sydney 2000 Olympics to me a good indicant for pricing the London Olympic Games. Based on similar economic systems. civilizations. and lifestyles. it would be sensible to presume Sydney’s pricing as a bench grade. Detecting Table 3. 2 below. the grades available in each of the athleticss below vary bespeaking the quality of the ocular experience at each pricing grade. Having merely a individual grade in indoor cycling indicates that everybody inside are traveling to hold no important advantage in footings of siting placement and therefore the one monetary value for all. Sing this and U. K’s past public presentation in this athletics. a premium monetary value must be charged for this. But this should be taking into consideration the general economic system maintaining in head that the planetary economic system was merely retrieving from a recession.

The immense popularity of swimming with the remainder of the universe would imply bear downing the same if non higher monetary values than the Sydney Olympics. Sing the athletics has 34 gold decoration events and a larger locale this should assist pull in grosss to do up for some of the less popular athleticss such as table tennis. This would besides enable offering attractive pricing on table tennis and pull crowds in who otherwise would non hold been interested. This is seen in the pricing for table tennis at the Sydney Olympics. which is 250 % and 64 % cheaper than comparable tier 1 preliminary events in swimming and indoor cycling severally. At 85. 000 seats available. it will besides be harder to sell the event out unless the pricing is truly attractive. Table 3. 2: Historic Ticket Pricing based on Sydney 2000 Olympics SportEvent StagePricing TierSydney 2000

SwimmingPreliminariesTier 1
Tier 2
Tier 3 $ 88
Prelim/FinalsTier 1
Tier 2
Tier 3 $ 286
Indoor Track CyclingPreliminariesTier 1 $ 41
Prelim/FinalsTier 1 $ 66
Table TennisPreliminariesTier 1
Tier 2 $ 25
QF & A ; SFTier 1
Tier 2 $ 35
FinalsTier 1
Tier 2 $ 47

Bundling excessively would non be a good option when one event ( table tennis ) is somewhat inferior ( less popular ) than the other ( swimming ) . There will be a
inclination to demo up for the popular event and be a no-show at the less popular events embittering the issue of audience attending.

4 ) Does it count that the London Olympics are a erstwhile event? Why or why non?

The Olympics is a not-for-profit organisation committed to the fosterage of good will and solidarity by conveying states together. Though the IOC is the chief organic structure. the day-to-day operations and planning of the London Olympics is being carried out by LOCOG. Any apathetic determinations taken without taking into consideration stakeholder’s involvements can hold long permanent reverberations on the country’s image. Following clip an event of such grandiose is in the plants. citizens will be cautious of the forming committee’s purposes. Not to advert the fact that London had already hosted the Olympics twice in the past set a precedency of outlooks and lessons learned. Pricing irrationally or non taking the multitudes into assurance could make a media incubus.

5 ) What would you urge to Williamson and the LOCOG?
My recommendation to Williamson and the LOCOG are as follows: •Use the Sydney Olympics 2000 as a baseline for pricing. visitant turn-out. and lessons learned •Segment the sing population based on state sing from. past public presentation of states in certain popular games. famous person participants. etc. to acquire an estimation of the traffic expected at each of the events. •Look into events on a instance by instance footing based on the pricing grades possible and determine pricing based on propinquity to participants. care and care of events. etc. •If possible clubbing some of the lesser popular locales or holding them near to each other could maintain renewed involvement of visitants in these events •Have a dedicated web site or an optional check to re-sell tickets such that the reselling has to travel through the LOCOG whereby the original proprietor has to log-in to reassign the ticket to another client but at the same monetary value. Sellers could be tracked and could merely sell for the purchase monetary value thereby non doing undue net incomes. •Have the option for visitants to purchase official souvenirs’ without holding to purchase tickets as memorabilia.


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