SeatGeek’s AI Engine Transforms Ticket Pricing for NFL Teams

NEW YORK, NY — Derek Zhou witnessed the culmination of years of effort during the dying moments of an NFL game last season. He observed a young quarterback throw a winning Hail Mary, triggering an explosive celebration among fans and marking the beginning of a memorable season for an unnamed NFL franchise. Zhou, head of SeatGeek, the team’s ticketing partner, played a crucial role in this moment by developing an AI-powered pricing tool called SeatGeekIQ, which instantly adjusted ticket prices during the game’s thrilling conclusion.

“During that play, the market was changing because people were looking for tickets for the upcoming game,” said Zhou. “The model was out there changing the prices, so while we were glued to the screen, the model was already moving prices up.” The price model analyzes various factors such as fan interest, team performance, and even cultural influences like celebrity attendance to determine ticket prices.

SeatGeekIQ originated from a need to modernize ticket pricing, a task Zhou took on in 2020. He recognized that the existing methods were often outdated and ineffective, failing to respond to real-time demand fluctuations. “This just seemed deeply inefficient — probably one of the most inefficient markets that I’ve ever seen,” he shared. The pandemic provided a unique opportunity to refine the model further, enabling the system to make real-time adjustments based on predictive analytics.

In its first season, SeatGeekIQ implemented over 10,000 price changes within the first hour of ticket sales for one team. Zhou emphasized that optimizing revenue is just one aspect of the system. “If we do our jobs right, it’s not just about maximizing revenue. It could be about filling seats and driving revenue, whatever is necessary to make the pie bigger,” he explained.

The technology has proven beneficial across various sports, including for the Florida Panthers, who entered the last season as the reigning Stanley Cup champions. Team vice president Michael Kesaris reported a remarkable success rate with re-priced playoff tickets, seeing 97% sold. The AI even managed ticket pricing changes due to unexpected external factors, like Hurricane Milton, which threatened to disrupt a season opener.

The Baltimore Ravens have also seen the advantages of SeatGeekIQ during their ongoing collaboration. Senior vice president Baker Koppelman, who has been with the team since it began in 1996, noted that the integration of technology has transformed ticket pricing strategies. He regards SeatGeekIQ as a valuable ally in navigating the complexities of ticket sales, stating, “I look at SeatGeekIQ as sort of my expert in terms of pricing.”

As the technology continues to evolve, Zhou and his team are focusing on building trust within the industry. They aim to enhance fan experiences while ensuring that teams are maximizing their revenue potential.