Yield management for the cinema industry

Sören Bär (), Teresa Rasch (), Michael Strohmenger () and Markus Kurscheidt ()
Additional contact information
Sören Bär: University of Bayreuth
Teresa Rasch: EY - Ernst & Young AG Bern
Michael Strohmenger: CineStar-Group Hamburg, CMS Cinema Management Services GmbH & Co. KG
Markus Kurscheidt: University of Bayreuth

Journal of Revenue and Pricing Management, 2025, vol. 24, issue 4, No 3, 334-342

Abstract: Abstract Cinema operators have so far behaved more conservatively in terms of their price management. In the course of the digital transformation, there are many opportunities for price innovations. The implementation of yield management strategies in the cinema industry would have a positive impact on revenue and capacity utilization and can both strengthen the competitive situation of cinemas and contribute to increasing profitability. It is essential to determine what the number or proportion of discounted tickets should be and how many tickets can be sold at the regular price. This can be calculated using the critical fractile method, which assumes that the demand follows the normal distribution in a certain period and the distribution parameters are known. In this paper, the number of tickets to be offered at the regular price is calculated based on the evaluation of statistical data on visitor numbers, occupancy rates and prices of the German cinema industry and a leading German cinema chain.

Keywords: Yield management; Cinema industry; Critical fractile; Revenue management; Dynamic pricing (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41272-024-00515-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorapm:v:24:y:2025:i:4:d:10.1057_s41272-024-00515-4

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41272

DOI: 10.1057/s41272-024-00515-4

Access Statistics for this article

Journal of Revenue and Pricing Management is currently edited by Ian Yeoman

More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().