Introduction
Event ticketing websites are increasingly popular, especially among fans of concerts, sports, and other live entertainment. However, the prices on these platforms often seem steep, leading to frustration for many consumers. This article explores the factors that contribute to the high cost of event tickets and the role of ticketing websites in this process.
Why Are Event Ticketing Websites Expensive?
Mark-up Fees
One of the primary reasons behind the high cost of event tickets is the significant markup fees imposed by ticketing websites. These fees can range from 10% to 30% of the ticket price, which is in addition to the original ticket cost. For example, during the Justin Bieber concert in Navi Mumbai on May 10, 2017, tickets sold through popular ticketing platforms could cost up to 5000 INR, due to the markup fees.
Sold Out Events and Limited Availability
The limited availability of tickets during popular events exacerbates the price problem. When demand far exceeds supply, ticketing websites can intensively inflate prices, often several times the original ticket price. Concerts, sporting events, and other high-profile events are prime examples of such situations. The intense competition for tickets leads to the creation of secondary markets where tickets change hands at sky-high prices, but the primary ticketing websites’ fees still apply to these transactions.
Transaction Costs and Platform Sustainability
Login, payment, and delivery fees
Common transaction costs include login fees, payment processing fees, and delivery fees. These additional costs can add up quickly, significantly contributing to the overall perceived high ticket price. For instance, a fan purchasing a concert ticket might be asked to pay an extra 200 INR for delivery or even more for specific seat types or early access.
Advanced Booking and Last-Minute Sales
Event ticketing websites often employ advanced booking and last-minute sales strategies to maximize profits. By offering early bird discounts, they attract buyers who may be willing to pay more later due to the perceived scarcity. Conversely, when tickets do not sell well initially, the website might slash prices, but the markup fee remains the same, leading to a final price that is higher than expected.
Market Trends and Economy
Macroeconomic factors also play a role in the pricing of event tickets. During periods of economic growth, consumers tend to be more willing to spend on luxury and leisure activities, driving up the prices of tickets. Conversely, during economic downturns, event ticket prices may actually decrease due to lower demand. However, the markup fees imposed by ticketing websites remain constant, making the final ticket price more favorable to the websites rather than to the consumers.
Impact and Alternative Solutions
Consumer Dissatisfaction
The high cost of event tickets has led to widespread consumer dissatisfaction. Many fans feel that the ticketing process is burdensome and the prices are unjustifiably high. This dissatisfaction can harm the reputation of event organizers and ticketing websites, leading to potential boycotts or moves towards alternative platforms.
Alternative and Transparent Ticketing Options
To combat these issues, some event organizers have started using alternative ticketing methods, such as:
Email and SMS Invitations: Directly inviting loyal fans to purchase tickets via email or SMS, bypassing the need for online platforms and reducing fees. Direct Sales: Offering tickets for sale through the event's official website or social media channels, thus reducing fees and providing a more seamless experience for fans. Cooperative Ticketing: Collaborating with clubs, universities, or fan clubs to sell tickets, offering discounts and building community loyalty.Conclusion
The high cost of event tickets is a complex issue influenced by a variety of factors. While ticketing websites play a significant role, consumer behavior and economic conditions also contribute to the problem. As consumers grow more aware of the high fees, they are increasingly seeking alternative methods to purchase tickets, driving changes in the industry. Event organizers and ticketing companies must continue to innovate and reduce these costs to maintain consumer satisfaction and drive business success.