Corporate Hospitality Review

Executive Summary
Sparten Corporate Hospitality Review
Executive Summary
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Sparten Corporate Hospitality Review
Executive Summary
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Table of Contents

Table of Contents..................................................................................................... - 2 -
Background ............................................................................................................. - 3 -
!ntroduction ............................................................................................................ - + -
Figure 1 Number of events per package ....................................................... - + -
Figure 2 Package by international/domestic .................................................. - 5 -
!nternational pricing v domestic pricing ...................................................................... - 5 -
Figure 3 Total costs of packages domestic v international............................... - 5 -
Figure + Price per head domestic v international............................................ - 6 -
Comparison by state................................................................................................. - 6 -
Figure 5 Percentage of Packages by State .................................................... - 6 -
Comparison by sport ................................................................................................ - / -
Figure 6 Comparison of total package cost .......................................................... - / -
Figure / Comparison by total package cost (motorsport ................................. - 8 -
averaged on a day by day basis) ........................................................................ - 8 -
Figure 8 Comparison of price based on per person per event .......................... - 8 -
Figure 9 Comparison by total package cost (motorsport ................................. - 9 -
averaged on a day by day basis) ........................................................................ - 9 -
Timing .................................................................................................................... - 9 -
Figure 10 Available packages by season....................................................... - 10 -
Figure 11 Corporate package availability by day of week................................ - 10 -
Sparten Services .................................................................................................... - 11 -
Customised Corporate Hospitality Reports ......................................................... - 11 -
Client Research .............................................................................................. - 11 -

Sparten Corporate Hospitality Review
Executive Summary
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Background

The third Sparten Corporate Hospitality Review researches and rates corporate hospitality
packages Australia wide in the following sports:
• AFL
• Basketball
• Golf
• Rugby Union
• Rugby League
• Tennis
• Notorsport
• Horse Racing
• Cricket.

The Executive Summary provides an overview of key findings arising from the reporting
process.

Over 1,000 separate corporate hospitality options were evaluated on a range of criteria
including:
• Cost commitment
• Time commitment
• People commitment and
• Package style.

The Sparten Corporate Hospitality Review is available on CD in four formats:
• National Report
• New South Wales Report
• Oueensland Report and
• victoria Report.

Sparten Corporate Hospitality Review
Executive Summary
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Introduction

Corporate hospitality at sporting venues and events in Australia continues to provide not only
a focus for corporate entertainment, but a significant income stream to the clubs and sports
that provide the packages. While some organisations contract out the management of their
hospitality program, the majority develop and implement packages in house.

The size of packages in terms of the number of events included is fairly evenly spread
between single session/game packages, multiple event/game packages and full season
packages.
Figure 1 Number of events per package
23%
26%
22%
23%
6%
1
2 to 5
6 to 10
11 to 15
> 15


The established place of corporate hospitality in the Australian sporting landscape is also
reflected in the number of high quality international events and packages that are available.
Despite earlier concerns as to the viability of international series or events being staged in
Australia due to distance and the relatively small population base, the number of
internationally relevant sports and events continues to grow. !n 200+, +0¾ of packages
analysed were developed for events of either international standing or for sports where the
Australian component has proven international relevance and attracts a proportion of touring
fans such as international cricket matches and Super 12 rugby union.
Sparten Corporate Hospitality Review
Executive Summary
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Figure 2 Package by international/domestic
40%
60%
International
Domestic


International pricing v domestic pricing

The ¨international" events attract crowds from interstate as well as internationally. On a
pricing basis, they tend to be more expensive than the average ¨Australian" event as they are
aimed at a broader market with different pricing expectations however on an international
basis they remain very competitive. Taking tennis as an example, the cheapest session at the
Australian Open is approximately $185 whereas the cheapest at the US Open is around
$1,050. Similarly the final at Wimbledon comes in at around $6,+00 compared to the final of
the Australian Open at $1,250.

Figure 3 Total costs of packages domestic v international

$22,300
$17,500
International
Domestic
Sparten Corporate Hospitality Review
Executive Summary
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Figure 4 Price per head domestic v international

Comparison by state
victoria is the home of corporate hospitality in Australia. With three major international
events in the form of the Australian Open Tennis, Grand Prix and Nelbourne Cup plus being
home to 10 out of the 16 AFL Clubs, victoria is host to over +0¾ of the packages analysed.
Figure 5 Percentage of Packages by State
20%
7%
18%
45%
10%
ACT/NSW
SA/NT
QLD
VIC
WA


Although normally it would be expected that the large number of packages competing in a
single market would result in highly competitive pricing structures, victoria is also the most
expensive state for corporate hospitality both on an overall package basis and a per head
basis.

This can be explained by three factors. First, international standard events which are part of a
global calendar such as the Formula 1 Grand Prix and which attract significant numbers of
$525
$275
International
Domestic
Sparten Corporate Hospitality Review
Executive Summary
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international as well as domestic visitors such as the Nelbourne Cup, tend to reflect
international price points.

Second, the Nelbourne market is very experienced in the use of corporate hospitality and
therefore has a higher threshold of what is considered ¨acceptable" in terms of price.

Finally, the Nelbourne market, as home not only to international events but AFL contains a
large number of AFL club packages, the format of which is more formal and structured than
occurs in the major competitor code, rugby league. The higher price of the AFL corporate
tickets relative to the rugby league packages which dominate the NSW market reflect the
higher costs involved in putting on a function of this style.

Comparison by sport

On a total package basis, motorsport stands out as the most expensive sport for corporate
hospitality. However, this finding needs to be taken in context. Figure 6 outlines the average
total package costs with the national average cost highlighted.
Figure 6 Comparison of total package cost
0
10,000
20,000
30,000
40,000
50,000
60,000
T
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Notorsport packages tend to be less flexible than those in other sports and usually cover the
full event with a large group (up to 200) rather than single days or sessions. This means that
for an event such as the Lexmark !ndy or the Grand Prix four days of competition are
included in the one price. !f the multiple days are taken into consideration and prices divided
on a daily basis, the per head costs of motorsport fall well within the ¨normal" price range as
indicated by the highlighted ¨motorsport alternate" in Figure /.

Sparten Corporate Hospitality Review
Executive Summary
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Figure 7 Comparison by total package cost
(motorsport averaged on a day by day basis)
0
5,000
10,000
15,000
20,000
25,000
30,000
T
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Conversely the cost effectiveness of tennis as a corporate hospitality option is based in large
part on the fact that the majority of tickets to tennis events are sold on a per session basis
(usually half day) with early sessions in the tournaments selling for as little as $185 inclusive
of catering.

Number of events included in the package accounts for the high placement of rugby league
which predominantly sells on a full season basis. The rugby union season is considerably
shorter with fewer events and the AFL clubs are more likely to offer flexible combinations
such as a Blockbuster package or a selection of A or B games.
Figure 8 Comparison of price based on per person per event
0
200
400
600
800
1000
1200
B
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Sparten Corporate Hospitality Review
Executive Summary
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Again, however, if motorsport events are taken on a daily rather than full event basis, prices
are more consistent with other events.
Figure 9 Comparison by total package cost
(motorsport averaged on a day by day basis)

0
50
100
150
200
250
300
350
400
450
B
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Timing

!ncreased time pressures on potential clients due to maintaining a work-family balance
combined with different expectations on timing commitments according to the time of year,
e.g. school holidays, are important influences on the success of corporate hospitality options.

Winter sports, particularly the various forms of football, are the most popular in terms of
corporate hospitality. There are two reasons for this. First the weather makes indoor
alternatives more attractive particularly in the main hospitality market of Nelbourne and
second, it is away from the major family oriented events of summer holidays, Christmas and
Easter.

Sparten Corporate Hospitality Review
Executive Summary
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Figure 10 Available packages by season
30%
46%
13%
11%
Summer
Winter
Spring
Autumn


As would be expected the most popular days for corporate hospitality are on the weekends.
While Saturday is slightly higher than either Friday night or Sunday, it is important to realise
that there is often more than one game played on a Saturday, ie afternoon games and night
games.

Figure 11 Corporate package availability by day of week

0%
5%
10%
15%
20%
25%
30%
M
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Percentage of total packages
D
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Sparten Corporate Hospitality Review
Executive Summary
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Sparten Services

Customised Corporate Hospitality Reports

!f you have a proposal for a corporate hospitality event that is not covered in the analyses in
this report, the Sparten proprietary methodology can provide you with a customised report
which provides a comparison of the event of interest with other packages in the market.

!f you wish to take advantage of this unique system to assist in your decision making
processes or to add to the justification for your purchases either complete the Expression of
!nterest form on the Sparten website (www.sparten.com.au) or call John Brown on 0+19 2+6
989.

This service can be used to cross compare hospitality packages from any sport, arts or
entertainment event.

Client Research

Lead by Dr Susan Dann, Director of Research, Sparten's research teams combine the best of
contemporary research methods with strong industry experience. Sparten can provide
objective research advice in the following areas:
• Corporate hospitality package design;
• Client satisfaction;
• Trends analysis;
• Narket analysis;
• Strategy and planning.