WO2007058661A1 - Ticket auction - Google Patents

Abstract

This computer-based Internet ticket auctioning method preregisters potential bidders and advises them that all bids are conditional offers to purchase tickets, and therefore cannot be lowered or canceled at will. The auction's organizer programs the computer that runs the auction with dates and locations of various events, and with auditoria layout and locations of seats to be auctioned. Each registered customer can view the layout of a particular auditorium and submit a bid for one or more seats. The bidder specifies whether a partially filled order and noncontiguous seat assignments are acceptable. The bidder is also provided with an option to engage a 'proxy bid' that will increase the bid amount up to a limit set by the bidder, in order to ensure purchase of tickets. Each customer can also choose to bypass the auction process entirely, by submitting a purchase order at a high, preset price. This preset price is automatically accepted and purchase of tickets is guaranteed. At the conclusion of the auction, the computer runs a seat allocation algorithm that assigns the seats to the bidders so as to maximize the total amount realized from the auction. The seat assignment algorithm is also run periodically during the auction in order to determine which bidders have already being outbid, and to allow them to raise their bids.

Description

TICKET AUCTION

TECHNICAL FIELD

This invention relates to the field of on-line auctions, and particularly to on-line auctions of

tickets for entertainment events

BACKGROUND OF THE INVENTION

Seats for theatrical, musical, sporting, and other events are typically sold based on a pricing

system that uses broad categorizations for seat locations For example, all orchestra seats in a theater

usually are uniformly priced for a given performance The same system applies to sporting events

All tickets for movies are priced uniformly for each showing, though discounts for certain classes

of people, e g , students and senior citizens, may be available

This simple system disregards the fact that within each broad category some seats are moie

valuable than others Moreover, setting ticket prices well in advance of a perfoi mance, and keeping

ticket prices constant, often misjudges the demand and fails to optimize pricing Not sui pπsingly,

tickets foi a given performance often sell out upon their release, for ongoing events, pations often

have to wait too long to get desired tickets These are reliable indicators that the tickets are

underpriced, i e , that the total amount collected by the event's producer/organizer is lower than

could otherwise be achieved. Alternatively, if the ticket prices are set too high, many tickets may

remain unsold, also reducing the total amount collected by the event's producei . despite highei average ticket price Because producers, as most people, prefer a bird in hand to two in the bushes,

tickets are practically always underpriced. Occasionally, the sub-optimal pricing benefits the

consumer, more often than not, however, it benefits the illegal re-sellers, also known as ' scalpers "

Several on-line auction methods designed to optimize revenue fiom ticket sales, as well as

to solve other problems, have been described One method is the subject of U S Patent Number

6,023,685 issued 8 February 2000 to Brett el al ("Brett" hereinafter), hereby incorporated by reference as if fully described herein Brett also describes several other auctioning systems and

methods

According to Brett, a central computer runs a ticket auction, leceiving and evaluating bids sent by bidders from remote terminals Although the bids are for seats in a single section with all

seats subject to the same minimum bid requirement, each seat is also preassigned a preferential rank After a predetermined bidding period, the central computer associates the seats with acceptable bids

based on the bid amounts and the preferential ranks of the seats, presumably with highei bids being assigned higher ranking seats During the bidding period, however, the bidders can cancel, raise, oi lower bids at will Brett's method also provides for ensuring contiguous gi ouping of seats subject

to a single bid

Brett's method has several disadvantages First, allowing bidders to lower or even cancel

their bids wreaks havoc with the auctioning process For example, one bidder can be outbid by another, and so notified, then, the higher bidder can cancel the bid, making the first bid acceptable,

despite the notification It is not even clear at what point a bidder becomes legally obligated to pay

for the tickets In sum, allowing cancellation and lowering of the bids creates uncertainty, even

chaos. Another disadvantage is that remote auctions differ from live auctions (By "remote

auctions" I mean auctions where bidding is done online, through telephone, or by similar means )

In a remote auction, there is no reason to conduct the auction in a short period of time, with each

bidder responding (or choosing not to respond) to other bidders substantially in real time; remote

auctions can, and often do, last for days, even weeks. Indeed, it would be difficult to conduct a

widely accessible remote auction in real time because of potential for telecommunication equipment overload caused by simultaneous attempts of multiple bidders to place or change their bids. A bidder

in a remote auction would have to check the status of the bids periodically to avoid being outbid. This is an inconvenience; moreover, because most bidding will probably be done towards the conclusion of the auction, telecommunication equipment can still become overloaded, preventing the bidder from raising his bid.

Yet another problem with Brett's method is that the contiguity requirement is the same for all the bidders, i.e., the algorithm that ensures contiguous seating operates on all the bids; it does not

allow each bidder, individually, to specify whether the bidder will accept scattered seats. Similarly, the algorithm does not allow each bidder to specify initially whether partially filled orders are acceptable.

OBJECTS OF THE INVENTION

It is the object of this invention to remedy the above as well as related deficiencies in the prior art. In particular, one object of this invention is to provide an automated method for remotely

auctioning tickets that eliminates chaos resulting from cancellation and lowering of previously

entered bids. It is another object of this invention to provide each bidder in a remote ticket auction with

automatic means to increase the bid in response to actions of other bidders.

It is yet another object of the invention to allow each participant in a remote auction to bypass

the bidding process entirely and ensure purchase of tickets.

It is still another object of the invention to let each bidder in a remote auction to specify, at

the time of bidding, whether noncontiguous seating and a partially filled order are acceptable in order

to improve the bidder's chances of purchasing a ticket or tickets.

SUMMARY OF THE INVENTION

To fulfill these and other objectives, the present invention provides for a computer-based,

remote ticket auctioning method that advises each participant, during the participant's registration with the auction or at some other time before bidding, that each bid represents an unconditional offer to purchase and therefore cannot be lowered or withdrawn. Also during the registration process, the participaat provides credit card information, or makes alternative payment arrangements.

The remote auctioning system will accept bids only from registered participants. When

bidding, each participant specifies one of four options:

1. Will only accept a full order with contiguous seats;

2. Will only accept a full order, but seats may be scattered;

3. Will accept a partial order, but seats must be contiguous, or

4. No restrictions - will accept a partial order with noncontiguous seats.

At the expiration of the bidding period, the central computer that runs the auction assigns aϋ

available tickets so as to maximize total amount received. Thus, selecting options 2-4 increases the participant's chances of obtaining the tickets at the bid amount because, for example, single scats

may be filled

To obviate the need for each bidder to check periodically the status of the bids, this invention

provides a "proxy bid" (100) - a way for the participant to enter the initial bid is to agree to a

predetermined, bid increment, and the maximum amount of the bid The proxy then increases the

participant's bid automatically, to ensure purchase of tickets, up to the maximum bid amount

Alternatively, if available, the participant may choose the "buy now" function to pui chase the tickets immediately, albeit at a high predetermined price

BRIEF DESCRIPTION OF THE DRAWING

Figures IA & IB depict a flow chart of a preferred Internet-based implementation of the i emote auction in accordance with this invention

DETAILED DESCRIPTION OF THE INVENTION

According to the method of this invention, producers of entertainment events transmit the

following information to the central computer (101) that implements the method

1 A seating chart (102) of a theater or stadium ("auditoπum"),

2 Seats to be auctioned,

3 Available performance dates (100),

4 Current price schedules (108) for different sections (1 10) of the auditoπum, and

5 Deadline (1 12) for accepting offers

The ticket seller of the auction may break the available seats for the same event into multiple

auctions, and thereby further minimizing scalping Templates (1 14) for the auditorium are obtained before an auction and stored on the central

computer (100) The best sources I know for these templates ( 1 14) are the following books Sandy

Millman, SEATS (for New York area), and Denise Cady, GOOD SEATS (for Los Angeles and

Chicago) The template (1 14) is displayed to the general public on the auction's Web site (1 16)

When a potential customer (potential auction participant or bidder) visits the site, the

customer is given the options of registering (1 18), logging-in (129), or browsing (122) the site If

the customer chooses to register, he will be prompted to enter identifying and billing information

( 124) Typical data ( 126) requested are

1 Log-In Name,

2 Password,

3 Name (first, last);

4 Address;

5 Telephone Number (voice, fax);

6 Credit Card Information (brand, expiration date), and

7 Email Address

After registering, the customer returns to the main page (128) of the web site Registered

(1 18) and non-registered browsing (122) customers can first click on a one of the available

geographical locations (128), e g , a State, which can potentially be anywhere in the world Typical

geographical choices presented are

New York,

California,

Nevada, Florida, and

Illinois.

Then the customer can indicate the type of event ( 13) he wishes to attend by clicking on an

appropriate symbol, such as.

Concerts,

Theater,

Opera,

Dance Performances,

Sports, or First Run Movies

The list of available events (13) in the category selected for that particular date (106) is displayed next Assume, for example, that the customer selected "Theaters" in "New York " If

available, the following shows would be listed.

Phantom of the Opera,

Les Miserables,

Chicago,

Rent,

Lion King The customer then selects the desired performance date ( 132) and goes to the next pa«c

Upon clicking on a specific event (130), a seating chart (102) appears Available seats ( 104) being auctioned will be listed, also base (minimum) prices (134) for bidding

If a given event is of interest to the customer, the customer indicates how many seats are

desned The amount needed to bid per seat (136) is displayed to the customer Note that the pei -seat

amount may depend on the number of seats desired if there are a hundred seats available and someone wants 6 seats, he might have to bid more per seat than someone who bids for one seat

depending upon bids already placed

Only registered customers (1 18) are allowed to bid, and no one may bid an amount less than

what is required to secure a ticket at the time of the bid That minimum amount can of course

increase as higher bids are received

At this time, the customer may be asked if he would like to increase the bid automatically by piedetermined increments up to a certain amount if he is outbid This is the ' proxy bid ( 100)

service described earlier

An order form is next presented to the customer The form requests the following

information

1 Number of tickets (138) desired to be purchased,

2 Amount bid per ticket,

3 If the bidder would be willing to accept non-contiguous seats (146) (optional),

4 If the bidder would accept a partial order (148) (optional)

To make bidding decisions more informed, the following data can be made available to all

browsers ( 1 ) bidding history (150), and (2) a running clock (152) indicating how long bidding will continue Based on this information, the bidder may increase his bid at any time, the bid, however,

may not be canceled or decreased

For those customers who absolutely "must" have the tickets, a way to bypass the auction may

be provided For example, the central computer may be programmed to accept bids at some

predetermined amount (154), at the time the bid is made, and to reserve the seats immediately

The next screen displayed to the customer shows a detailed summary ( 156) of the order and

what the order will cost if and when accepted, including service charges, if any The computer asks

the customer to confirm that (1 ) the bid is correct, and (2) the total charge is accurate and is authorized by the customer. The specifics (158) of the desired transaction are displayed to the customer to avoid any misunderstanding of expenses If the information is accurate, the customei

advances to the next screen, which asks for another confirmation

Do You Wish To Use The Credit Card On File?

If yes, processing the bid is a simple matter, otherwise, new credit card data is requested on a new screen, and the customer is asked if he wishes to use the new credit card as the means for future

payments

When the bid is complete, the customer is given a confirmation code ( 160) so that at any time

prior to the close of the auction the status of the desired seats can be obtained and the bid can be

raised Registered participants are able to access all current and past orders (164) As described

above, the customer can also elect to have the "proxy bid" increase the customer's bid automatically

at preestablished increments up to a certain amount. Throughout the process, each customer is repeatedly reminded that the bids are commitments

to purchase tickets, and are binding if accepted.

After a given offer is submitted, the customer will have the options of bidding on a different

event (168), exiting the site, and purchasing related materials (170). Under the last option, links can

be provided to sites (172) selling, for example, music CDs and memorabilia.

Before exiting the site, the customer is asked if he would like to receive e-mail notifications

(174) of other events. If so, a form listing the types of events of interest is presented to the customer.

When the time allotted for bidding expires, the central computer runs an algorithm ( 176) that determines the winning bids so as to maximize the total amount realized from ticket sales. Note that

the algorithm does not necessarily allocate the seats to the highest bidders; a higher bid can be

bypassed in favor of a lower bid when the total realized amount is increased by accepting the lower bid. This generally happens when some lower bid is made by someone willing to take a partial order or noncontiguous seats. Thus, a bidder willing to accept noncontiguous seats or partial orders

improves his chances of obtaining the tickets.

The customer's credit card (178) is billed prior to seats being allocated.

After completing the auction, the auction site's operator submits a list of customers and seat allocations to the event's producer/operator. Each successful bidder is notified by e-mail that (1 ) he has won the bid on "x" seats, (2) the exact amount charged against the customer's credit card, (3)

a special code (180) that will uniquely identify the successful bidder to the event's operator, and (4)

a reminder (182) that the e-mail should be printed and brought to the box office ( 184) along with

identification. If the tickets are a gift, the box-office must be notified who will be retrieving the tickets If the ticket purchase was a phone order, the customer is notified by phone under the same

protocol.

The box office prints the tickets with the amounts for which they were purchased, which of

course are the amounts of the winning bids. This should preclude any charge that the tickets have

been scalped; when tickets are scalped, they are sold for an amount higher than the price printed on

them. It will also allow the event's producer to verify the amounts for which the tickets were sold.

Three days after the event, the event's producer will be paid the contractual amount, for

example the base ticket price plus one half of the amount over the base price, less pro-rated credit card charges. If the event is canceled, refunds are automatically given to the customers, and the

producers are charged all credit card fees.

All information exchanges described in this document can also be made via telephones. It is, however, less cost efficient and more cumbersome than using the Internet

Although a number of specific features have been described in this specification, those

skilled in the art will be able to devise various other modifications that although not explicitly described or shown herein, embody the principles of the invention and are thus within its spirit and

scope.

Claims

1. A method for conducting a remote auction of event tickets from a central

computer to a plurality of customers at remote locations, each said customer connected

to the central computer by telecommunications apparatus for receiving and

transmitting information, the method comprising the steps of:

programming the computer with a template of an auditorium where the event is

scheduled to take place;

programming the computer with available seat data, the seat data identifying

seats intended for sale during the auction, each of the seats intended for sale

corresponding to a different ticket;

programming the computer with a minimum ticket price below which no ticket

may be sold during the auction;

transmitting from the central computer to the customers, before the individual

customer registers and before said customer makes any bids, a first message to notify

the customer that bids submitted by the customer during the auction are non-revocable;

further transmitting form the central computer to the customers a message that

customers can individually specify that partial orders and scattered seats are acceptable;

requesting registration information from at least a first customer, the registration

information, including the first customer's name, password, and payment information

registering the first customer for the auction; receiving bids from at last two of the customers, each of the bids including a seat

quantity indicating a number of seats bid for, an amount bid, means indicating whether

the customer who submitted said each bid is willing to accept noncontiguous

seats, and whether the customer who submitted each bid is willing to accept fewer seats

than indicated by said each bid's seat quantity, and

performing in a computer a seat assignment algorithm for allocating the seats

intended for sale during the auction among the received bids and incorporating at least

one of the customers indication of willingness to accept noncontiguous seats and partial

orders in a way that maximizes total amount receivable from the customers for the seats

intended for sale during the auction.

2. A method according to claim 1, further including the step of notifying

each customer who submitted at least one bid of the submitted bid's status, said status

including a notification of a first number of seats allocated to the submitted bid, a first

amount equal to the cost of the seats allocated to the submitted bid, and a unique

identifier of the submitted bid.

3. A method according to claim 1, further including the step of informing

each customer of a current minimum bid amount that the customer must bid to qualify

for seat allocation.

4. A method according to claim 1, further including the steps of:

setting a guaranteed purchase amount for the tickets intended for sale during the

auction, and

enabling the customer to purchase one or more tickets, without participating in

the auction at the guaranteed purchase amount.

5. A method according to claim 1 further including the step of enabling a

first customer who submitted a first bid to engage a proxy bid means for automatically

increasing the first bid by a predetermined increment up to a first limit.

6. A method according to claim 1, further including the step of sending from

the central computer to the telecommunications apparatus, a graphical representation

of the template and the available seat date.

7. A method according to any one of claims 1 - 6, wherein

the central computer and the telecommunications apparatus are connected via

the Internet, said steps of transmitting, registering, receiving bids, notifying, and

informing are performed through the Internet, and the step of registering the customers includes the step of receiving a second

customer's name, password and payment authorization.

8. A system for conducting a remote auction of event tickets, the system

comprising:

a central computer, the central computer including:

means for communicating with a plurality of customers at remote locations;

means for receiving and storing a template of an auditorium where the event is

scheduled to take place;

means for receiving and storing available seat data, the seat data identifying

seats intended for sale during the auction, each of the seats intended for sale

corresponding to a different ticket;

means for receiving and storing a minimum ticket price below which no ticket

may be sold during the auction;

means for transmitting from the central computer to the customers a message

that customers can individually specify that partial orders and scattered seats are

acceptable;

means for requesting registration information from a first customer, the

registration information including the first customer's name, password, and payment

information; means for receiving the requested registration information;

means for receiving bids, each bid including a seat quantity data item indicating

a number of seats bid for, the amount bid field, means indicating whether the customer

who submitted said each bid is willing to accept noncontiguous seats, and means

indicating whether the customer who submitted said each bid is willing to accept

partial orders than indicated by said each bid's seat quantity, and

means for performing a seat assignment algorithm for allocating the seats

intended for sale during the auction among the received bids wherein at least one of the

customers indication of willingness to accept noncontiguous seats and partial orders is

incorporated such that the total amount receivable from the customers for the seats

intended for sale during the auction is maximized.

1/2

2/2

FIG. IB