A return to the classroom sees The Jockey Club creatively challenge its traditional pricing approach.
Despite business booming, it was recognised that there was a need to drive revenue outside the core body of racing fixtures and to maximise profits through tactical pricing in a dynamic and competitive market, which The Jockey Club is governed by Royal Charter to reinvest back into British Racing.
Identifying that The Jockey Club could drive revenue by adopting more dynamic pricing models went alongside the recognition that historically its pricing strategy had been more static. Now was the time to explore how the group could take bolder decisions.
“Our teams are split across fifteen different locations, all facing distinct challenges. We recognised that there was a need to come together and explore creative pricing strategies so that each region would be empowered to take learnings and adapt them to their own local challenges,” said Paul Fisher, Group Managing Director of Jockey Club Racecourses.
In the last 6 months, The Jockey Club has established a partnership with the School of Hospitality and Tourism Management at the University of Surrey for the delivery of a bespoke programme in revenue maximisation.
Led by Surrey’s Professor Andrew Lockwood, Forte Professor of Management and Sylvia Ganbert, expert in Revenue Management, the School delivered a programme to generate ideas that could be practically returned back into the business, linked in to best practice examples from hospitality, airlines and sports venues.
Recognising the need for a ‘safe’ creative environment in which to test new dynamic pricing structures and ideas, the two worked together to deliver a day and half course that would see The Jockey Club’s regional teams competing against each other in a simulation that echoed its changing marketplace.
Using an online hotel simulation, each team was able to make pricing, marketing and distribution decisions based on real data, testing theories and analysing performance. Working together to put strategies into action in a way that removed the risk factor, it encouraged people to make bold decisions related to marketing spend, pricing, understanding segmentation and see how they could improve results.
“It’s had a great effect, the programme has led to a different mindset on pricing and distribution and from changes that have been made across the business, we have seen revenues increase and that helps us to fulfil our mission to support the long-term health of British Racing,” commented Paul Fisher.
A SnapShot in revenue management at The University of Surrey, introducing a more collaborative approach to Demand Management.
Register your interest by emailing e.gaymer@surrey.ac.uk.