The report commissioned by Prestige Ticketing Limited, the official hospitality provider to London 2012, predicts that companies’ return on investment will exceed 12%. The report also reveals that the total value of 2012 Olympic hospitality is set to exceed more than £3 billion as companies clamour for top tickets at next year’s event.
Professor Simon Chadwick, director of the Centre for the International Business of Sport at Coventry University, said: “Our research clearly shows that companies and businesses buying corporate hospitality packages will reap the benefits in the longer term. Many company boards of directors are now establishing clear guidelines for the return on investment they expect on corporate hospitality expenditure as with any other element of their marketing mix. Our report demonstrates that to these directors exactly what return on investment they can expect to see from buying Olympic hospitality.”
The report was released as it was revealed that around two-thirds of the most expensive corporate hospitality packages remain unsold, although organisers maintained they were confident of finding buyers despite current economic conditions. Prestige Ticketing revealed it had sold 30-40% of its allocation, with strong interest in the tennis, diving and equestrian events.
It is estimated that around 6.6 million tickets will go on sale to the British public. A further 2.2 million will go to international sports fans, National Olympic Committees, sponsors, international federations and other key stakeholders. The vast majority of the 6.6 million tickets have already been sold. Prestige Ticketing’s 120,000 tickets for the Olympics and Paralympics equate to less than 1% of the total. Thomas Cook and Jet Set Sports are also selling official hospitality packages.
Andrew Burton, chief executive of Prestige Ticketing, added: “What this research shows is that buying corporate hospitality at London 2012 is a business decision that will deliver a significant return on investment for customers. Gone are the days when hospitality was seen as a marketing luxury. It is now an integral part of any company’s corporate and marketing strategy and can yield major benefits for the organisations involved.”
