One of the fundamental tasks of revenue management is capacity management. This is something airlines are good at. They deliberately overbook so that all seats get filled.
For concert producers, the objective of getting a full house means ensuring every seat is occupied. This may mean selling stand-by discounted tickets at the 11th hour. [Notice that last minute flight fares are never half-price!]
Last time I organized a seminar, I did not bother to ask people to RSVP. Respondez si vous plait. I was filled with nerve-wracking trepidation, growing as the event got closer. What if only a few people showed up? What if too many people showed up? Last minute, I changed to a bigger room. A good move. Around 35 people showed up.
For today’s seminar, I asked attendees to reserve their seats by filling out a short survey. When the numbers didn’t fill as quickly as I expected, I sent a round of e-mails through another mailing list. A few people e-mailed me their plans to attend instead of filling out the survey — they did not show up. Filling out the survey unfortunately did not oblige the attendees to show up. While the majority of those RSVP’d did show up, there were a few cancellations.
In hindsight, I would have saved time creating and monitoring the survey by not requiring RSVP.
There has to be a more reliable way of gauging the final turnout. How do we get people to hold to their RSVP? What is the point of requiring RSVP when people can show up without prior reservation, and those who do reserve can not show up without penalty?
This phenomenon happened early on in the Monument House Concert Series. I decided that I had to demand prepayment as a condition of booking. No show – no refund. After all, revenue management was more important than capacity management. If the revenue stream was certain, then we’d breakeven and have a peace of mind.
In conclusion, requiring people to RSVP is an extra step for them and yourself. Think carefully whether it’s necessary. For today’s seminar, not only did I get a rough headcount, I also got questions in advance.