2023: Ticket Price Volatility Higher Than Ever - Why?

2023: Ticket Price Volatility Higher Than Ever - Why?

Now that dynamic pricing is here to stay, ticket prices on various websites have been more volatile than we've ever seen before.

Over the past 20 years, there has been a cat and mouse game played between the different websites on the first page of google when searching for any artist/team and the term "tickets."

The various players would compete to have the first price shown as the lowest, and marking it up on page 2,3, or 4 another 15-45% based on a plethora of metrics - specific to each specific ticket exchange.

We are entering a different time for resale tickets, as primary issuing bodies (AXS, TicketMaster, and more) have began changing ticket prices on a daily or weekly basis based on demand.

In addition to this dynamic pricing change in the market, the US Govt recently met with top sites like TicketMaster, AirBnB, etc that have especially high fees on page 2,3, or 4 of their purchase process and established a unified front to 'end junk fees.' 

This will put considerable pressure on the ticket exchanges that do not own the venue or artist relationship.  As the government applies pressure and consumers get more knowledgeable about fees, they will be less likely to purchase after being tricked on page 2 through 4 of the checkout process. 

Ticket exchanges that can continue operating and thriving in this new format will need to begin investing into the venues or the artist relationships.

 

The Good:

The artist and the promoter have ability to track supply, demand, and their own marketing calendars to shift prices up or down based on supply.  Ultimately the artist should be earning more money, and have the ability to cancel shows if they aren't able to perform profitably.

This is great, as it should allow access to tickets directly from the artist through showtime.  The artist takes some risk doing this vs. selling all of the tickets at a lower price consistently, BUT as time passes, these calculations will get better and better (like hotels and airlines) until the revenue is truly maximized.

Safety has also increased, while fraud has decreased.  As people become more aware of tickets being priced dynamically and safely, it should shift to becoming similar to booking a flight - where an understanding of supply/demand is accepted by the consumer and there are no brokers trying to sell fake tickets online.

More ticket exchanges should pop up.  Competition will bring in better practices across the industry.

 

The Bad:

Shopping for tickets with confidence you're finding the best deal is especially hard.  With several billion dollar players in the ticket resale game, there is considerable competition to get in front of ticket buyers.

In addition, this puts more power to the ticket issuers like TicketMaster and AXS, which can be viewed as a monopoly.  

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