Film-Tech Forum ARCHIVE: Online Ticketing

This is topic Online Ticketing - Revenue Increase? in forum Ground Level at Film-Tech Forum ARCHIVE.

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Posted by Ryan Navaroli (Member # 3477) on 03-08-2009, 04:37 PM:

Our theater uses RTS POS software. Added into this package is free online ticketing where if you choose to charge a fee, it is yours to pocket. This seems to me like an incredibly stupid service not to utilize.

In addition to the convenience factor for customers the increase in revenue seems like it could tally to a substantial amount over the year especially from the big midnight shows and opening days for college aged movies (we are a college town).

At the moment my boss feels like we will loose revenue based on the people who come in to see a show when its sold out or has low seats and decide to see another show. I don't have any way to prove numbers on potential revenue increase vs loss etc etc...

Anyone want to weigh in on internet ticketing helping business?

Anyone who uses RTS's internet ticketing have opinions on ease of use etc...

Thanks

Posted by Justin Hamaker (Member # 2165) on 03-08-2009, 05:15 PM:

Your first consideration when it comes to on-line ticketing is the cost. Are you sure that RTS doesn't charge for the on-line ticketing? They may not charge for program, but they might charge for the transactions.

Keep in mind the studios will try to claim their percentage on any fees above the ticket prices. Their argument is that you are actually charging $10.50 per ticket rather than $9.50 - even if the extra $1.00 is itemized as a convenience fee.

Consider whether RTS uses a print at home ticketing system or if customers will have to print their tickets at the theatre.

If your theatre/company is strict about ratings enforcement, online ticketing can create a weak link that will make it easier for people to get around your enforcement.

Finally, consider whether it will really help your business. If you don't have a competing theatre close enough to make it a viable alternative, then on-line ticketing my not be a priority.

On the other hand, if sellouts are common, on-line ticketing could help you know ahead of time whether you need to add shows or interlock.

I haven't worked for a theatre that offers on-line ticketing, but I'm guessing it will increase the problem of people showing up five minutes before showtime thinking they will be able to pick their seat just because they already have the ticket.

Posted by David Zylstra (Member # 4230) on 03-08-2009, 08:19 PM:

As far as I know most (or all) exhibitors doing online ticketing do not have to share the service fee with the studio.

Online advance ticketing gives an exhibitor the chance to put income in the bank days before the actual show runs (i.e. we had many shows of Batman sold out a week before it opened - 95% of these tickets were sold online). Number of advance sales can be an indicator of how busy a show will be.

A few things to consider:
Increased credit card usage means increased processing charges, not a big deal since the service fee can cover most of the cost.
Internet (and phone) sales are not swiped transactions and in many cases subject to higher processing fees due to increased fraud risk.
Increase fraud risk - anyone can dispute CC charges and if you do not have a signed reciept to show someone physically picked up their tickets all credit card companies will do a "charge back" to your account if you cannot produce a copy of the signed receipt.
If possible shop competing 3rd party portals like Fandango and Movietickets.com to see how their offers compare to RTS (I thought RTS provides their own ticketing portal with a revenue split).
Any revenue split should be done AFTER CC processing charges are subtracted.
Come up with a policy for online tickets - stuff like "seating is first-come first-served basis", "note that ticket purchase does not gaurantee entry to age restricted films", etc - have the online portal post your rules.

My own personal opinion is that there are no tangible increased sales due to online ticketing for most locations; BUT if you have a competing theatre who does offer online tickets and you sign up with the same online portal your showtimes will be displayed along with your competitors whenever someone searches for showtimes in your area, this could lead to some customers deciding to visit your locations instead of the competition if your showtimes are more appealing.

Posted by Kevin Fairchild (Member # 4985) on 03-08-2009, 09:30 PM:

Ryan,

Go for it! We use RTS here, and I dont see a reason not to do online ticketing. Nobody seems to mind the $1 extra fee. You don't split the cost with RTS. The studios don't see the extra charge, and even if they did, it's a convenience fee that people pay YOU extra for to buy their tickets online. Do you already take credit cards at the theater? If people are already paying with a credit card at the box office, why not recoup that transaction fee back?

We will ocassionally have a chargeback dispute, all we do is print the disputed transactions and fax it to the credit card company. They have NEVER asked for a signed copy, maybe thats just lucky though.

We also just integrate RTS into our website. http://www.fairchildcinemas.com/Current/Pasco/Tickets.html

I say give it a try. If you start having problems, just pull the service.

Kevin

Posted by Tony Ratcliff (Member # 1196) on 03-09-2009, 03:50 PM:

Kevin,

I tried going to the RTS purchase screen on your web site,
but when I clicked on the showtime, it went to RTS's sight, then came up with the message that the theater could not be contacted.
What causes this?
Is this something that happens often?

Posted by Kevin Fairchild (Member # 4985) on 03-09-2009, 06:39 PM:

Thanks for the heads up, Tony!

No, that doesn't happen often, I messed with our network settings today and I guess that it interfered with the online ticketing. I changed the settings back, and it works again.

Posted by Scott Norwood (Member # 30) on 03-09-2009, 07:52 PM:

The "convenience fee" that pretty much everyone seems to charge for online ticket sales is a load of crap!

As a customer, I find it extremely annoying to be charged extra for the privilege of buying a ticket online (which, if anything, should be cheaper than buying it in person, as it reduces the in-person transaction time considerably). Online ticketing could conceivably benefit both sides, yet many people (myself included) will not use it if an extra fee is charged.

Credit-card merchant agreements specify that there can be no minimum charge for credit-card purchases, and that the price of an item for sale cannot be increased when the buyer chooses to pay by credit card.

I see no justification for adding a surcharge for online ticket sales, especially since sellouts are rare at most theatres.

Posted by Mike Blakesley (Member # 26) on 03-09-2009, 10:46 PM:

quote: Scott Norwood
I see no justification for adding a surcharge for online ticket sales

I find that annoying too, but I guess they're trying to help pay their website maintenenace fees which are high.

Our local power/light company has online payments, but they charge a 15% "convenience fee!" Screw that! I'll very conveniently continue to pay by check until they knock that nonsense off.

Posted by Scott Norwood (Member # 30) on 03-09-2009, 11:40 PM:

This is 2009, though. Having a web site has been part of the cost of doing business for well over a decade now. Theatre owners have web sites because they are cheap advertising and increase the number of tickets sold.

What's next? Newspaper advertising surcharge? Telephone surcharge? Seat surcharge? Screen surcharge? Sound system surcharge? Ticket stock surcharge? Bathroom surcharge? [Razz]

Just raise all ticket prices if necessary, but don't nickel and dime customers in what amounts to a bait-and-switch scheme that makes tickets look cheaper than they really are. This is why people hate most airlines and car dealers.

This business is supposed to be about making people happy, not making them angry. It seems to me that it is in everyone's interest to make it as easy as possible to buy movie tickets, which means that online ticketing is a good idea.

Posted by Julio Roberto (Member # 4976) on 03-10-2009, 12:37 AM:

quote: Scott Norwood
Bathroom surcharge?

Don't joke about it. Have to start saving for digital.

http://www.iht.com/articles/ap/2009/03/05/business/EU-Ireland-Ryanair-Pay-Toilets.php

quote:
Airliner Ryanair chief executive Michael O'Leary insisted Thursday he's serious about making passengers pay for the right to relieve themselves on flights — and is flush with interest in the idea of mounting credit card-operated toilets.

Posted by Jack Ondracek (Member # 1466) on 03-10-2009, 06:45 PM:

When the RTS feature first came out, convenience fees were kept by the theatre. Later, RTS tried to build a model that let them share the fees; the rationale being that they were providing the site that routed the transactions.

Since they restructured their rates, they've removed the "sharing" concept and you again get to keep all of whatever charge you might add.

If someone can't access a particular theatre through the RTS site, it's because the site actually connects the customer to the theatre's database computer. If it's down, a transaction can not be completed.

Posted by Bill Enos (Member # 440) on 03-10-2009, 08:24 PM:

Gone!