Financial Considerations for (Re)Opening Night
A soft opening of smaller performances with fewer audience members will most likely be the normal operating mode until such a time that patrons and staff feel safe to do more. Social distancing guidelines set out by the Center for Disease Control and local authorities will have a negative impact on revenue as, more than likely, your venue will have occupancy limits. The reduction in seating capacity needed to meet distancing guidelines of approximately two meters, or six feet, may result in higher ticket prices to offset loss of revenue, putting the performance out of reach for younger or new audiences who may have less disposable income.
This situation has also impacted potential expenditures beyond normal operating costs as the performing arts community looks for ways to re-engage with their patrons and artists in a safe and productive way with minimal compromises to the quality of their productions. We have identified the following key financial opportunities:
Extended Hours of Operation
Although offering extended hours could be seen as a potential negative, the opportunity exists to entertain, inform, and engage patrons in a meaningful way. This level of commitment to your patrons encourages repeat visits for future productions or showcases other revenue generating occasions.
Alternate Pricing Models
Many venues are looking at how best to restructure seating configurations in an optimal way to maximize the audience, even at a reduced capacity. Our recommendation is a fluid approach based on demand and grouping sizes. Dynamic seating can positively influence ticket segmentation and special access, which could be based on volume of patrons offered special pricing accommodations for attending in a group within the same family, thereby mitigating social distancing rules. Offering this flexibility, whether by performance or in a season subscription, can have positive impacts on earned ticket revenue.
Alternative/New Revenue Production
Expanded outreach and educational programming, including using technology to reach more patrons, can become revenue streams that are either advertised during extended hours or even provided during those hours.
Develop New Media Technologies and Experiential Design
New media technologies and mediated architecture that provides an immersive experience could become potential revenue generating sources. This same level of technology can work to your advantage in branding, messaging, and storytelling beyond the stage to attract visitors.
Rental Stock Improvements
Now is the perfect time to take a comprehensive inventory of your venue’s assets, including costumes, props, scenic elements, and other assets that can help to reduce future expenditures and generate revenue through rental programs or sales. Left-over storage space could be leased to other organizations as an additional revenue source.
Flexibility in Utilizing of Ancillary Spaces within Your Venue
Similar to back-of-house and outdoor spaces, opportunities exist within ancillary spaces such as rehearsal rooms, conference rooms, and donor lounges that can be converted to house smaller shows, play readings, overflow, or other non-performance related events. Permanent and portable technologies can be used to transform these areas into viable spaces to generate revenue when otherwise unoccupied.
Reduction of Operating Expenses
Strategies to reduce operating expenses include a materials analysis to find the most frequently used materials and efficiencies in construction methods for scenic, props, costumes, and the like through reduction of production elements, rentals into a production, or through partnerships with allied organizations for bulk purchasing.
Look for ways to fill more seats with fewer performances and to reduce show lengths or days in run by examining production run schedules. Strategies for front-of-house may include app development that allows for touchless ticketing while also providing opportunities to improve revenue streams by allowing in-app purchases for concessions, merchandise, and future performances in real time. Apps also provide the benefit of data mining and data analytics that allow you to better target audiences with custom tailored content for a more personalized experience while reducing printing and marketing costs.
Read our operations considerations to help the performing arts community safely re-engage their patrons and artists without compromising the quality of their productions.
Healthy Air in Action
For Air Quality Awareness Week our architects, engineers, building analysts, data scientists, and interior designers share how their work impacts air quality.
2023 ITGA Conference: Building Resilient Communities
Join Krista Trofka and Woody Giles as they speak on the role space plays in higher education environments for student wellbeing.
2023 ITGA Conference: Building Resilient Communities
Join Jackie Eckhardt to hear how she’s “Weaving Town/Gown Planning with Indigenous Culture” at the ITGA Conference.
DLR Group to Speak at NY Healthcare Real Estate Conference
Senior Principal and Global Healthcare Leader Phil LiBassi, FAIA, FACHA, will present on ambulatory care and inpatient upgrades.
Designing for Equity: A Guide to GIS Principles
Interested in design for equity? Learn five principles that unlock GIS’ potential, and questions to ask your designer or planner.
Debate: Designer vs Developer
Join Henrique Dias at the 13th Real Estate Development for a panel exploring the unique perspectives designers and developers bring to a project.
Repurposing Existing Buildings for New Uses
Join Henrique Dias at INDEX's Design Talk panel on the considerations involved in giving new life to old buildings to meet the needs of modern users.
The Renwick Revisited
Across from the White House, DLR Group x Accidentally Wes Anderson explores the Smithsonian’s Renwick Gallery, sharing the story and design updates of, “the American Louvre.”
Protecting the Symbol of the City: Preserving Portlandia
A well known symbol of Portland, the Portlandia sculpture required special considerations during our reconstruction of the Portland Building.
Outdoor Learning: Enhancing Student and Educator Well-Being
Student and staff well-being is deeply rooted in how we design learning environments. As educators seek to engage students in new ways, learning outdoors provides many benefits and opportunities for powerful learning experiences.