Corporate hospitality at the London 2012 Olympic Games could net businesses up to £1.6bn, a new report has claimed.
Businesses could earn a return on investment of more than 12 per cent, according to the report commissioned by Prestige Ticketing Limited, which is the official hospitality provider to the Olympic and Paralympic Games in the capital.
Companies are buying up the hottest tickets to next year’s event which is now less than 12 months away. The report reveals the total value of 2012 Olympics hospitality could surpass £3bn. Up to 78 per cent of the packages available are priced at £1,000 or less.
Director of the Centre for the International Business of Sport at Coventry University, Professor Simon Chadwick, said: “Our research clearly shows that companies and businesses buying corporate hospitality packages will reap the benefits in the longer term.”
Chadwick added: “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 vast majority of the 6.6 million tickets available to the British public have already been sold, while a further 2.2 million tickets will be distributed between National Olympic Councils, sponsors, international sports fans and federations and other key stakeholders.
Prestige Ticketing Limited chief executive Andrew Burton said: “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.”
Burton continued: “We deliver corporate hospitality packages for a host of different sporting events right around the globe but the Olympics in London is something very special. Today’s report illustrates there is a clear business case for Olympic corporate hospitality. The message is clear: make sure you take your clients because if you don’t your rivals will, and they will reap the benefits.”