Revolutionize Ticketing Systems: Enhance Security, Speed, and Fan Experience With Next-Gen Solutions

Ticketing solutions that create a strategic shift across the technological ecosystem.

Analyst Perspective

Meet event-goer demands while enhancing security and operations.

The ticketing market is largely controlled by dominant vendors who stifle innovation, and the adoption of new digital systems typically disrupts traditional operating models. Traditional business processes must be redesigned to meet the current needs of event-goers.

While innovation is at the forefront of everyone's minds, it’s important to note that many venue operators struggle with old infrastructure, such as legacy systems or low-quality network connectivity. Additionally, varying regulatory requirements concerning data and other assets across jurisdictions can complicate innovation in the ticketing space.

By understanding these disruptions and the new opportunities that digital ticketing can provide to the business, leaders may realize that adopting a next-gen ticketing approach is more than just a technology upgrade. It is a strategic shift that empowers leaders to enhance operations, bolster security, and stay aligned with consumer demands.

Elizabeth Silva Senior Research Analyst, Sports, Gaming & Hospitality Info-Tech Research Group

Executive Summary

Your challenge

Legacy systems hinder an effective shift from traditional to digital ticketing, where modernized systems across the technological ecosystem are needed.

The ticketing vendor marketplace is heavily monopolized by large ticketing vendors who influence the direction of the market, limiting innovation.

Digital adoption disrupts traditional operational processes, requiring a redesign to ensure seamless and memorable experiences that meet attendee expectations.

Common obstacles

Poor network connectivity within the venue can create barriers to using digital channels such as digital tickets at the event causing new pain points in the journey.

Regulatory requirements vary per jurisdiction where venue operators want to innovate but are unsure which compliance/regulations are required of them.

Ticket scalping and fraud risks are increasingly prevalent, hindering the delivery of seamless and enjoyable experiences to attendees.

Info-Tech’s approach

By understanding the market disruptions, challenges, and opportunities in modern ticketing today you will be able to:

• Determine the current state ticketing process through a value chain analysis.
• Map the ticketing journey to illustrate the desired future state and needs of ticketing by identifying gaps and opportunities for innovation.
• Identify evaluation criteria for consideration when assessing different ticketing vendors.

Info-Tech Insight

Embracing next-gen ticketing is not just a technological advancement, but a paradigm shift that empowers technology leaders to reshape their operations, enhance security measures, and remain relevant to the needs of attendees today through the power of data.

Key industry trends are highlighting the push toward innovation and enhanced security

Ticketing trends showcase the need to remain relevant and responsive to the needs of consumers today.

1. Fraud prevention with advanced technology
   Ticketing platforms are implementing biometric authentication and digital identities, AI-driven fraud detection, and real-time monitoring to secure transactions and protect attendees from the growing threat of fraud and ticket scalping.
2. Improving engagement with millennials through technology
   As millennials are the dominant consumer group, event organizers are using virtual/augmented reality (VR/AR) and mobile apps to create immersive and personalized experiences to cater to digital preferences.
3. Dynamic pricing and timed entry
   The increased use of dynamic pricing and timed entry systems allows for price adjustments based on demand and improves crowd management during ingress.
4. Live streaming
   The combination of in-person and virtual experiences continues post-pandemic where VR experiences and web3 technologies are enhancing the appeal and flexibility of these events.
5. Contactless and NFC ticketing
   Mobile, biometric, and NFC ticketing is becoming the new standard for improving access control, security, and a seamless experience for attendees.
6. Universal RFID access control
   RFID-enabled wristbands or cards are expanding their presence at events due to their seamless access control, which is contactless and efficient. The versatility of this technology goes beyond the entry points but also acts as a cashless wallet to purchase food and items.
7. AI and real-time data utilization
   AI is being used to personalize experiences, optimize operations, and predict attendance to influence informed decision making in real time.
8. Open distribution of tickets
   The ticketing and events industry is shifting towards open distribution for tickets, where tickets can be sold across multiple channels increasing inventory turnover, data monetization, and reduction of fraud through secure channels and technologies.
9. Blockchain technology for ticketing integrity
   The decentralized and tamper-resistant nature of blockchain ensures that tickets cannot be duplicated or manipulated. Additionally, smart contracts powered by blockchain have automatic verification and execution of ticket transactions, minimizing the risk of fraud and enhancing security.

(Sources: “2024 Ticketing Industry Trends,” Softjourn, 2024; The Event Planner Expo, 2024.)

Eliminating bottlenecks at MLB games with biometric ticketing

INDUSTRY: Sports & Entertainment | SOURCE: Pymnts, 2024

MLB creates its own biometric ticketing experience with NEC

Challenge

Most venues experience long entry lines, slow concession processes, and outdated security protocols creating bottlenecks that hinder the overall operational efficiency of the event.

As fan expectations grow, so do expectations for streamlined and technology-driven solutions to improve the experience. However, there are concerns about data privacy and security with newer innovations such as biometric ticketing.

Solution

The MLB recognized these challenges and introduced its Go-Ahead Entry facial authentication technology across its stadiums, starting with the Philadelphia Phillies at Citizens Bank Park.

Fans can enroll in this ticketing process through the MLB Ballpark app, where they can upload a selfie which is then a tokenized facial scan entry.

Stadiums are also adopting facial authentication check-out systems to improve speed and processing times at concession stands.

Results

Introducing biometric ticketing to the MLB has created a 68% faster entrance compared to the traditional lanes.

Additionally, self-checkouts have reduced wait times from 40 minutes to just a few at concession stands.

Overall, these technology advancements have improved the speed of operations, enhanced safety, reduced congestion, and improved the overall fan experience.

Chicago Blackhawks blend tangible tickets with digital innovations

INDUSTRY: Sports & Entertainment | SOURCE: SBJ, 2024

Introducing modern twists to nostalgic mementos

Challenge

Digital ticketing has streamlined the fan experience, but the traditional physical ticket was once a cherished keepsake that has nearly vanished.

This created a gap in the market for a memento just as meaningful and collectible as a physical ticket.

Creating a product that not only brought back the nostalgia of physical tickets but also the integrated experience of digital innovations was a challenge.

Solution

The Chicago Blackhawks partnered with Eventshop to launch the Blackhawks Classics Program, offering fans the opportunity to purchase commemorative physical tickets for $10 at home games.

These tickets were also integrated with augmented reality components through a QR code on the back, showcasing highlights or significant moments from the game.

This provided an interactive way to relive memorable moments, blending the tangible with the digital.

Results

So far, the Blackhawks Classic Program has seen early success with 0.5% to 1% of game attendees purchasing the AR-integrated physical tickets, with a surge to 10-12% for significant games.

Projections suggest that playoff games or potential Stanley Cup Final could see 15-20% of attendees opting for these collectible tickets.

This initiative has not only filled a gap in the industry but also introduced a modern twist that enhances fan engagement.

A variety of factors make it challenging to adopt next-gen ticketing methods

• Legacy systems hinder the ability to effectively shift from traditional to digital ticketing, where modernized systems across the technological ecosystem are needed.
• The ticketing vendor marketplace is heavily monopolized by large ticketing vendors who influence the direction of the market, limiting innovation.
• Digital adoption disrupts traditional operational processes, requiring a redesign to ensure seamless and memorable experiences that meet attendee expectations.

Live Nation/Ticketmaster controls 70-80% of major concert tickets and 80% of NHL, NFL, and NBA stadiums in the US. This creates an unfair playing field due to their dominance in the market, where new ticketing entrants struggle to compete and disrupt the market. (Source: Cornell J.L. & Pub. Pol’y, The Issue Spotter, 2023.)

“US businesses still spend up to 75% of their IT budget simply maintaining legacy systems.” (Source: Devico, 2024.)

“One-third of respondents said up to 25% of their legacy systems are unable to support advanced technology tools and workloads.” (Source: CIO Dive, 2024.)

“75% of IT leaders worry that their data infrastructure won’t scale to meet the growing needs of consumers.” (Source: Intelligent CIO, 2023.)

The obstacles to modernizing the ticket experience and process are more evident than ever

• Poor network connectivity within the venue can cause barriers to using any digital channel such as digital tickets at the event causing new pain points in the journey.
• Regulatory requirements vary per jurisdiction where venue operators want to innovate but are unsure which compliance and regulations they must adhere to.
• Ticket scalping and fraud risks are becoming more prominent and hindering the ability to deliver seamless and enjoyable experiences to the attendees.

40% of all online ticket purchases are done by scalper bots to be sold at higher prices. (Source: Imperva, n.d.)

90% of internet users agree that their online privacy is important. (Source: Exploding Topics, 2024.)

Privacy is a critical factor in developing a next-gen ticketing approach

A vast majority of Americans support the Data Privacy and Protection Act:

• 87% support banning the sale of data to third parties without users’ consent.
• 86% support requiring companies to minimize the types of user data they collect.
• 86% support increasing online privacy regulations for children under 17.

Adults across the globe want to do more to protect their privacy:

• 80% say they are concerned about their privacy.
• 61% say they willingly sacrifice data privacy in exchange for convenience.
• 55% believe it’s impossible to fully protect their privacy.
• 51% say they don't know how to protect their privacy.

(Source: Exploding Topics, 2024.)

Investing in the ticketing management ecosystem drives ROI

Consider the following ticketing investments and their benefits that can drive an effective return on investment (ROI). Refer to the next slide for metrics.

• Centralized data collection and monetization platform

  Collecting attendee data allows growth through innovative digital formats and integration with other channels developing unified profiles.

• Advanced analytics

  Easier post-event analysis, performance tracking, and future event planning with real-time and historical analytics, providing insights into sales and attendee behavior.

• Enhanced marketing and sales

  Boost promotional efforts by creating targeted ticket types through various channels, enabling 24/7 sales efforts.

• Simplified payments

  Modernized platforms offer secure payment options, reducing the need for cash and minimizing risk of theft or loss.

• Streamlined check-in process

  The event check-in experience becomes smoother, reducing wait times through various digital-friendly validation methods.

• Improved customer support and experience

  Reliable customer support channels are a valuable feature to attendees, while also helping venue operators by improving the overall attendee and user experience.

• Advanced fraud prevention and security measures

  Implementing advanced technologies like AI and blockchain allows for improved security practices minimizing fraud and data breaches.

(Sources: Stax, 2024 and “Event Ticketing Systems and Why You Need One,” Accelevents, n.d.)

"With the event ticketing market hitting $77B USD in 2023, the market is poised for an impressive 9.7% revenue growth in 2024." (Source: 2024 Ticketing Industry Trends, Softjourn, 2024.)