Introduction
The American Ballet Theatre is an internationally celebrated cultural institution dedicated to preserving and extending the legacy of classical dancing based in New York City. Since its founding in 1939, The American Ballet Theatre has remained committed to producing innovative performances, reaching a wide audience, and providing high-quality education in classical dance. They reach over 300,000 people annually through their performances, and work with over 40,000 people through their training and community programs.
The American Ballet Theatre is a landmark institution in the performing arts sector. It was a pleasure to work with them on improving their pricing management and strategy. Helping them tailor their approach will ensure they protect their revenue stream while increasing the opportunities for a wider audience to see amazing performancesMuriel Schtickzelle, Partner
Scope
The goal of this project was to help the American Ballet Theatre (ABT) optimize ticket prices for its different seat sections and consider various factors such as the type of show, special events, etc. to better cater to a larger set of audiences. Additionally the project will eventually help ABT to develop a dynamic pricing model to respond to changing demand closer to performance dates. For three months we analyzed historical performances, understood occupancy patterns, and provided price recommendations for every seat. We then built an excel-based, easy-to-use, dynamic pricing model taking into account each show’s specific dynamics.
Supporting the American Ballet Theatre was a great experience. Seeing the team deliver such immediate, lasting impact for this leading arts nonprofit organization can only be described as Oliver Wyman at its very bestDamien Calderini, Partner
Impact
Optimizing ABT’s pricing model will help the organization to maximize revenue from ticket sales, leading to more diverse revenue sources, improved financial stability, and the ability to continue offering its audience the highest quality performances and educational programming. Our pricing recommendations are being tested during the ABT 2019 Spring Season with the new updated pricing, and our dynamic pricing tool will continuously adjust to match the demand the organization encounters.
Working with the American Ballet Theatre was a lifelong dream. As a nonprofit performing arts organization, ABT does not have the budget to afford such a project from a top consulting firm, despite needing it. I am very grateful to be given the opportunity to bring our pricing and analytical expertise to this very important institutionBen Tubiana, Team