Barry Kahn, founder and CEO of Austin, TX-based QCue appeared on CNBC this week to discuss his company’s involvement with the San Francisco Giants dynamic ticket pricing plan this season. See the video below.
The San Francisco Giants are the first team in Major League Baseball to experiment with dynamic pricing, which is an initiative that allows the team to alter ticket prices at the box office on-the-fly. The model resembles that of airlines that change prices based on demand and other factors.
Under the Giants plan, the team will look at various criteria to determine whether to increase or decrease the price of tickets, such as the who the opponent is, what popular players will be in the game, the weather and how sales have been going leading up to the game. The team is experimenting with about 2,000 seats, but may increase that number next year.
“QCue is about putting fans in seats,” Kahn told CNBC. “We take into account the same factors that you as a fan would take into account when deciding whether to go to a game.”
Kahn believes his company can help any team that is experiencing some lagging ticket sales, such as the New York Yankees, which has seen sales for its premium seats tail off this season, mainly due to the high prices the team is charging.