A Capacity Reduction For The Better?

Cheltenham Racecourse has announced that there will be fewer tickets for sale for Gold Cup day 2013 in the interest of comfort for racegoers.

A record sell-out crowd of 70,458 attended Gold Cup day in 2012. A figure which the racecourse are trying to lower by reducing the amount of tickets available by 3.5% to 4% in 2013, this should equate roughly to 2500 tickets.

70,458 race goers watched the tragically ill fated Synchronised victory  in the 2012 Gold Cup

A statement from Andy Clifton, communications manager at Cheltenham, said: 'If there were any problems with the weather next year people would not have a comfortable experience.'

He continued: 'We feel it's the right thing to do in the long term interests of the business. It is not due to public outcry, It is just that having 72,000 people, given the current infrastructure, leaves it creaking at the seams.'

Clifton's opinion is that lost revenue from ticket sales will be made up for by increased revenue at bars and food outlets due to shorter queues.

I think there is a real opportunity for Cheltenham Racecourse currently. Although I am all for 'a day at the races' being a comfortable, enjoyable experience. While demand is high, I think Cheltenham should cash in on the potential profit to be made. Especially in the current recession, where a fall in demand is more common than a rise for the type of product horse racing offers. Stories have arisen about loyal Gold Cup day racegoers were dissatisfied with the experience they had in 2012 in comparison to other years, and have threatened to not return. At the end of the day there is only one Gold Cup day a year, so as a product it will be always be in demand. I understand a company should always value its customers, but the tickets these people may give up in 2013 are going to be in high demand. I feel Cheltenham Racecourse should only worry about their most loyal racegoers not attending if they didn't have anybody to replace them.

On the other hand, I understand the danger for Cheltenham if they do this is that they may lose their racegoers all together for the other 15 days of racing throughout the year. I also understand that Cheltenham has won its 'Racetrack Of The Year' award from The Racegoers Club from 2004-2011 by offering a brilliant quality product, with very high consumer satisfaction. I for one can vouch for Cheltenham Racecourse being the best racecourse I have attended.

The dilemma is, how can Cheltenham Racecourse make Gold Cup day 'revenue neutral' without jeopardising the comfort of the race goer through overcrowding?

The answer will be known in greater detail after the 2013 Festival. What I'm sure Cheltenham Racecourse will be aware of is that 'a day at the races' is a luxury product. So when money is tight within the economy, luxury products are the first thing on the list to be doing without.

However, with this not appearing to be an issue at the moment, I feel the time is right to grasp the opportunity with both hands and make the most of the profit potential the Festival creates.

An alternative option is for Cheltenham Racecourse to push through the planning process of a re-development to cater for any 70,000 plus crowds they may receive in the future, whilst also maintaining the level of consumer satisfaction.

The bumper crowd also witnessed Bellvano's emotional victory for trainer Nicky Henderson in the Grand Annual - A race named after his father Johnny.