s The London Olympic Games Tradeoffs Paul Williamson was the head of ticketing for the games. He and his team were concerned with making the strategies for valuation and circulation of millions of tickets that would go on sale commencing 2010. The revenue collected from the sale of tickets accounts for twenty percent the total revenue of the Olympic Games. To increase the number of tickets sold, it will require a decrease in value f the ticket in order to make it affordable to the common Londoners hence resulting to reduction in revenue.
On the other hand, increasing the value of tickets will increase revenue, but result to decrease in the number of seats occupied. Therefore, this posed a great challenge to Paul Williamson and his team in deciding on whether to increase the amount of revenue by fifty million dollars by selling seventy percent of the tickets or increase the sale of tickets to ninety percent, but lose fifty million dollars of sales revenue. The focus of the Olympic management committee was to balance the sale of tickets to the attendants and maintain a huge number of fans from the beginning to the end of the games (Courville & Bertini 1).
This strategy was going to be different from the usual procedure since the previous records showed that mainly the sales of the ticket is high for the first and the last events of the Olympic games. Therefore, Paul Williamson intended to ensure most of the seats were occupied during the entire games period and that the occupants were the ordinary fans who would add taste to the game.
The main goal of the ticket sale was to maximize revenue and attendance to the London Olympic Games (Courville & Bertini 11). However, these goals were difficult to attain because the effects the decisions taken are in opposition with each other. For example, increasing the sale of tickets will result to reduction in sales revenue. On the other hand, to increase the sales revenue required will require an increase in the value of the tickets hence resulting to decline in sales since the tickets will become unaffordable to most of the people.
Furthermore, high pricing of the tickets will eliminate enthusiastic fans hence the game will become boring. This will clash with management’s target of ensuring the games as lively as possible. Pricing plan The London game managers have to attain a balance between the three goals of revenue maximization, maximizing ticket sales and ensuring the attendants are the desired group who will make the event as cheerful as possible (Courville & Bertini 10). In order to achieve this target, the management has to select a strategy that will favor all the outcomes.
These goals can be achieved by setting the price of the tickets neither too high nor too low (Carmona 129). This will ensure most of the targeted fans are able to afford the tickets. Also, this will increase the number of tickets sold and increase the amount of revenue from the sale of tickets. Works Cited Carmona, René. Indifference Pricing: Theory and Applications. Princeton University Press, Princeton, NJ (2009). 123-146 Courville, John, T & Bertini, Marco. The London 2012 Olympic Games. Harvard Business School (2011). 1-11