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Maximising the return from sports hospitality

Hospitality is increasingly important as a source of revenue for sports clubs and events.  Clubs and organisations need to ensure that they have the right packages in place to meet the needs of their current and potential customers, including both personal and corporate users. 

Understanding the relative importance which different groups place on component parts – be that environment, food, drinks, information, accessibility or speakers and gifts – is vital in order to increase overall revenue and optimise profit.

There is considerable variation in the extent to which sports are maximising their potential hospitality revenue.  While some areas, such as top flight professional football and major horseracing venues, have established robust research programmes to support their future development, others lag behind and are failing to realise anything approaching their full potential.

The analysis techniques involved have a strong proven track record.  Overall preferences can usefully be quantified using a market research approach involving conjoint analysis.  This derives the importance attached to different elements of the hospitality package mix, by asking them to make a series of choices between different options.  

Statistical analysis enables relative preferences to be calculated at an individual level, so we are able to model the overall appeal of any combination of options, and to understand the profile of users it is most likely to attract.

Focus groups and depth interviews provide useful complementary insights to help refine the final package formulation.

For more details of our research for event & hospitality development, or for information on sponsorship tracking in the sports sector, please contact Kevin Tyrrell at 2020 Research on 01226 767120.