Capacity Management
Strategic decisions about event sizing and ticket allocation to optimize revenue and experience.
Definition
Capacity management involves strategic decisions about event size, venue selection, and ticket allocation to optimize revenue while maintaining experience quality. This includes choosing between larger venues with more tickets or smaller venues with scarcity-driven demand and pricing power.
Sophisticated capacity management considers multiple factors including demand forecasting, production requirements, and brand positioning.
Why It Matters
Capacity decisions fundamentally shape event economics and audience experience. Undersizing creates missed revenue opportunity while oversizing risks poor attendance optics and financial loss.
Understanding capacity dynamics helps entertainment professionals make informed decisions about event scaling.
Examples in Practice
An artist might choose to play multiple smaller theaters rather than one arena to create urgency and premium pricing. Festival capacity limits balance ticket revenue against infrastructure costs and crowd safety.
Dynamic capacity management might hold inventory initially, then release additional tickets based on demand patterns.