Jan 24th, 2011 by T.C.
There was an interesting piece today from the Daytona Beach News Journal about how hotels in the Daytona area are working harder to get fans to come and stay for the 500. The article mentioned that average hotel prices are down significantly since 2008, and that ticket prices for the 500 have also come down. Obviously the price drops are a symptom of the falling attendance that NASCAR has experienced over the last couple of years, but while it’s good to see the cost of attending a race is falling, we need more and quicker.
A sidebar to the News Journal article shows the average nightly rate for Daytona area hotels in February since 2001. It’s interesting to note that between 2001 and 2008, the average rate rose $47.26. But from that high in 2008, rates are only back down $26.73 on average. I understand that other factors like inflation are in play here, but simple supply-and-demand says prices should be lower.
Tracks have also gotten into the act, with most dropping seat prices and allowing for greater flexibility with payment and package options. Many have also experimented with adding different seating and camping areas, and other entertainment options like pre and post-race concerts. But again, with so many empty seats, it would seem that more could be done to get fans back to the track.
According to the experts, one big area where viewership is down, is with the younger demographic. NASCAR’s main audience has skewed older, and is now the highest of any major sport. I believe one way in which this could be combated is with lower prices. They want younger fans to come to the track and watch on television, so make it more affordable for those younger fans to experience NASCAR.
My whole point here is that NASCAR and the tracks should be working towards a new pricing model. They’ve obviously seen that the sport isn’t strong enough to continue charging high prices in a bad economy. So instead, why not go in a different direction? Why not make NASCAR the best value in sports? Price the tickets for races so low that fans have no other choice but to come out.
Something I’ve never understood about sports, is that when attendance is suffering, why venues don’t do more with ticket prices. Isn’t it better to have the place full with lower prices and maybe more free tickets, than to have an arena 50% full at full price? The more fans in attendance, the more consumers you have to sell food, beverages, and merchandise too. You are also able to build a relationship with that fan that could spawn loyalty and future purchases. This is what NASCAR is missing right now.
It appears that creating a fantastic product on the track hasn’t done much in the way to coax people back to the track. While we have had the same champion for the past five seasons, the racing has never been closer in the history of the sport. So if the product is good, and people still aren’t showing, what’s left to do? Lower those prices. Make it more affordable for those blue collar families to come and enjoy racing, and you’ll get that younger demographic back. Families will bring the kids that will be ticket buyers in the future, and younger people will come out to have a good time because it doesn’t cost an arm and a leg.
The sport as a whole is experiencing a correction because of the bad economy. We are seeing it with everything from sponsorships to ticket prices. Everyone wants more value for the dollars they are spending. For the fans, I say leave the product as it is, and add value by bringing down the prices. If you drop them (the prices), they will come.
TheNASCARInsiders.com
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