The sports and entertainment industries have been slow to adopt revenue management techniques. Although these industries face demand with similar characteristics to that of airlines and hotels, there are additional opportunities to manage demand by offering ticket packages for multiple events. We characterize the a priori optimal timing policy for offering a ticket package and individual tickets when customers arrive according to linear Markovian death processes. We extend the general model by determining the optimal policy for offering multiple packages, demand characterized by nonlinear death processes, and the optimal marginal pricing policy for a given sales horizon.

Students and faculty are invited to remain after the seminar for a coffee and snacks reception sponsored by the The Logistics Institute.