Morgan:News:2010 |VANOC| #2568 (FEATURE)
VANOC DETAILS PROGRAM TO SELL OR GIVE AWAY 1.6 MILLION TICKETS TO OLYMPIC EVENTSThe Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) today moved itself further into the public spotlight with what VANOC's vice-president of Communications, Renee Smith-Valade, said was announcement that was, "Our first of many on how to truly experience the Games."
VANOC CEO John Furlong and his senior marketing and ticketing officials, as part of a well-orchestrated marketing campaign, this morning released detailed information on how the organization expects its modestly priced Olympic ticketing program will work (the program for selling the 250,000 tickets to the Paralympic Games will be released later this year). The information was placed on VANOC's website as part of the launch along with some public-relations features, and marketing e-mail messages to those who had earlier signed up requesting ticketing information. Ticketing and volunteer issues are the two topics that generate the most queries to VANOC.
In essence, VANOC says that it is using higher-than-expected sponsorship revenues and high prices on a portion of the tickets available to subsidize lowered prices for tens of thousands of venue seats. The forecast higher sponsorship revenues, though not yet reached, has reduced VANOC's risk that it would have to delve into its contingency funds, set at C$100 million, to carry out its ticketing policies, or that it would have to raise revenues for the Games through a larger ticket-revenue plan.
About 1.6 million Olympic event tickets will be on offer, but a block of about 30% of those will be sold by VANOC directly to corporate sponsors, national Olympic committees, volunteers, people working on producing the Games, athletes and their families, the media and other members of what VANOC calls, "The Olympic Family." Negotiations with corporate sponsors about their requirements are expected to begin in January, and any unrequested tickets that result from those talks will be added to the public's block. About half of the tickets in the public block will be priced at C$100 or lower.
Lotteries, with random draws, are to be used for events that have more demand than tickets. These are expected to be at least the Opening Ceremonies, as well as the medal hockey and curling events.
The most expensive ticket, to the Opening Ceremony, the event VANOC expects to be in the highest demand, is expected to cost C$1,100, the cheapest seats in the Games where a price is charged, such as events with relatively low demand, are C$25. VANOC says the Opening Ceremonies tickets, which bottom out at C$175 each, have a lower price range than the equivalent charge at either the 2006 or 2002 Winter Olympics.
Dave Cobb, VANOC's executive vice president of Revenue, Marketing and Communications said VANOC ignored advice given to it by others, whom he didn't name, that it charge only top dollar for the ceremonial pageants, such as the Opening and Closing Ceremonies, and what VANOC calls the "Victory Ceremonies", the nightly medal-and-entertainment events, and focus its subsidization policies on the competitive events.
And, in some cases, he said VANOC will even offer 50,000 tickets free, including some for the pageants, through non-profit community groups, charities and other social organizations that can give VANOC sufficient assurances that those who receive the tickets "truly desire" to attend the Games, and won't immediately resell the tickets and pocket the cash. Deals with these groups have yet to be negotiated.
On the other hand, he notes, VANOC still expects to make its target revenue figure of C$231.9 million, 14.2% of total operational revenues, and may slightly exceed it, just with the pricing structure it's established.
Also still to be finalized is the choice of the firm that will actually be handling the ticketing platform. An international call for veteran companies interested in providing the sales strategies, computer systems, software, call centre and employee training needed for the ticketing program went out last January. Cobb says he expects the negotiations with the proponent firm selected will be completed "in a couple of weeks".
Cobb estimates that about 90% of the tickets will be sold over the Internet by VANOC itself, and that it's too early yet to decide if national corporate sponsors, such as the Royal Bank, would be involved in hosting ticket-sales locations, as was done by financial institutions sponsoring the Torino Games. Cobb said, however, that he expected there would be locations in various parts of British Columbia and the major cities of Canada where those who, for one reason or another, couldn't buy their tickets through the Internet.
Caley Denton, VANOC's vice-president of ticketing and consumer marketing, said the first phase of the three-phase ticketing program, which will work in a similar way to that of the program at Torino's Winter Olympics, begins exactly one year from now when the application phase begins. "That'll be the first and best opportunity to get tickets," he said. The application phase involves electronic forms on the 2010 website that people use to request tickets for specific events or event packages.
When that phase opens next October, tickets will be available for request for the public throughout the world as well as Canada, although actual purchases of tickets by international buyers will be made through their national Olympic committee or the firms they have designated to sell tickets for them, as per International Olympic Committee rules. No ticket sales will be made during this phase.
When it closes, Phase 2 begins and runs from early to mid 2009: VANOC will assign seats on a first-come, first-service basis. By that point, it should have much better information on the actual seating layout in venues, and it will inform applicants what tickets they were awarded -- the earlier applications will get the better seats -- and the cost, and payments will begin to be received. In the third phase, ticket sales will reopen, with any remaining seats made available; tickets bought during this phase will be sold directly into any available seats.
VANOC expects to set up a wide range of measures to reduce scalping, ticket theft, counterfeiting and other unsavory aspects of modern event ticketing. For instance, tickets will have extensive anti-counterfeiting features [
for details, see RESOURCES, below], and the tickets themselves won't be released until late in 2009, to reduce the time counterfeiters have access to them. And Cobb emphasized that the public should only buy their tickets through VANOC and its "approved" distributors, which have yet to be contracted, or run the risk their tickets won't be honoured because they had cancelled because of theft.
Cobb also expects to have in place an extensive series of measures to deal with last-minute ticket trades. This category includes tickets that can't or won't be used, such as situations where the evolution of a national Olympic team's success (or lack of it) changes the demand for the subsequent competitions. In such cases, sometimes substantial numbers of people want to give up their tickets to an event, while others are suddenly interested in the same event but don't have tickets.
Also included in this category are tickets of national sponsors where, say, weather, changed the timing of event, interfering with the plans of, say, its employees to attend because of other events taking place at the same time. In such cases, one of VANOC's plans is to have schools or other agencies ready to take blocks of tickets for students on quick notice; another is to set up a trading system within VANOC's ticketing software.
The rationale for timing the discussion of the tickets, when none are actually available, has several branches:
VANOC needed to have the pricing information available for corporate sponsors when negotiations begin in January on how many they want, and for what events; since it had the information anyway, this seemed to be a good time to release it.
By IOC rules, VANOC can't market tickets until after the 2008 Summer Olympic Games are over, which will be a year from now.
Overseas tourism companies and national Olympic committees around the world, as well as international sports federations, also need to have the information available so they can start to do planning or package marketing, as the case may be.
It gives the public a chance to start thinking about what they feel they'll be able to afford to see in connection with their holiday planning, or, perhaps, to give some a chance for the public to begin saving for the purchases and the costs that accompany them, such as hotels and travel expenses, or to apply for passports.
RESOURCES
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Our earlier story about what the VANOC ticket selling firm will be expected to provide:
'The process of assembling 2010's ticketing system has been launched'
[Morgan:News:2010:Number:2075; Published on Monday, January 8, 2007]
A story we wrote earlier this year on a survey VANOC commissioned about the kind of public demand for its events it expected as of this summer:
'VANOC survey indicates millions of Canadians interested in attending Games, and buying tickets'
[Morgan:News:2010:Number:2220; Published on Friday, March 23, 2007]
VANOC's website portal on the details of ticket sales to the public:
tinyurl.com/3bfuz4
Originally published to Morgan:News:2010:Gold subscribers on October 11, 2007