Ticketmaster fees have become increasingly controversial in recent years as ticket prices continue to rise. Consumers are frustrated by the multitude of fees that get tacked onto every ticket purchase and often end up doubling the base ticket price. But what exactly do all these fees pay for? Here’s a breakdown of where the money goes.
Service Fees
One of the most common fees you’ll see on a Ticketmaster order is the “service fee.” This fee goes directly to Ticketmaster to cover the costs of operating their ticketing platform. This includes:
- Technology costs – Maintaining their website, mobile apps, ticket scanning software, etc.
- Staffing – Customer service reps to handle ticket inquiries and sales agents to work with venues/promoters.
- Order processing – The transaction costs involved with every order.
- Other overhead – Corporate operations, marketing, administrative expenses.
Service fees are Ticketmaster’s main revenue generator and can be as high as 25% of your ticket cost. The exact percentage varies based on the event. As a leading ticketing marketplace, Ticketmaster has been able to steadily raise these fees over the years due to lack of competition.
Facility Fees
Facility fees (sometimes called venue fees) go directly to the concert venue or sports stadium that is hosting the event. This helps cover their operating expenses. These costs include:
- Staffing – Security, ushers, janitors, box office employees, etc.
- Utilities – Electricity, water, keeping the lights on.
- Equipment – Stage rigging, audio/video systems, goal posts.
- General upkeep – Ongoing maintenance and repairs.
Facility fees tend to be flat amounts per ticket and not a percentage. They can range from $3-10 for smaller venues up to $25 or more for large stadiums and arenas. These fees help offset the high overhead of operating a major event space.
Order Processing Fees
Order processing fees cover the costs of processing transactions. This includes:
- Payment processing – Credit card fees and payment gateway costs.
- Fulfillment – Printing and delivery of tickets by mail or mobile transfer.
- Customer service – Support for order-related inquiries before, during, and after purchase.
Processing fees are usually a flat per-ticket rate regardless of the overall order total. Ticketmaster typically charges around $5-$10 per ticket for this.
Ticketmaster Benefits
While steep fees are never popular, there are some benefits Ticketmaster provides in exchange:
- Huge distribution network – Access to tens of millions of customers worldwide.
- Advanced technology – Investments in mobile ticketing, dynamic pricing engines, and data analytics.
- Security features – Safeguarding against fraud, bots, and malicious attacks.
- Full-service support – Dedicated reps to manage inventory allocation, promotions, reporting, and more.
For event organizers and teams, these services are critical for maximizing ticket sales and revenues. It grants them access to Ticketmaster’s industry leadership and expertise.
Breakdown of Sample Ticketmaster Order
To better understand where all these fees go, let’s break down a hypothetical $100 concert ticket purchased on Ticketmaster:
| Fee Type | Amount |
|---|---|
| Ticket Price | $50 |
| Service Fee | $20 (20% of ticket price) |
| Facility Fee | $10 |
| Order Processing Fee | $5 |
| Sales Tax | $8 |
| Total | $100 |
In this case, the various Ticketmaster fees add 50% onto the base ticket price. The artist/promoter receives the $50 ticket revenue. The venue gets $10. And Ticketmaster earns $25 in fees plus a portion of the ticket value.
Who Sets Ticketmaster Fees?
Ticketmaster does not have sole control over the fees. They are set based on negotiations with venues and event organizers. Typically, venues or artists determine the ticket face value. Ticketmaster then imposes service fees on top of that based on their contracted rate.
The more leverage the venue/artist has in negotiations, the lower the Ticketmaster fees tend to be. Smaller indie venues agree to higher fees compared to major stadiums and promoters like LiveNation who have more bargaining power.
Are Fees Avoidable?
Tickets purchased directly from the venue’s box office may have lower fees or none at all. However, selection is limited for popular shows since most inventory gets allocated to Ticketmaster. Reseller sites like StubHub avoid Ticketmaster fees but charge their own even higher premiums.
For most major concerts and sporting events, Ticketmaster is unavoidable without paying inflated secondary market prices. But consumers can still mitigate fees by buying early during presales, grouping orders together, and avoiding print-at-home delivery options.
Future Outlook
There is growing resentment over the sky-high fees Ticketmaster imposes on its captive audience. Some bands like Pearl Jam have protested by skipping Ticketmaster entirely for their tours. Consumer class action lawsuits have also tried to challenge their dominance over ticketing.
With Ticketmaster merging with LiveNation in recent years, their stranglehold over major venues and artists has only strengthened. Significant fee reductions seem unlikely unless an equally powerful competitor emerges or new regulations get enacted.
Conclusion
In summary, Ticketmaster service fees primarily cover their technology costs and overhead for running the platform. Facility fees help venues fund operating expenses to host events. Order processing compensates for transaction costs. While these fees can feel excessive, they grant access to Ticketmaster’s powerful ticketing ecosystem.
The lack of competition allows Ticketmaster to charge higher fees compared to other ecommerce sites. But as long as they maintain their vast network of venues and ticket inventory control, they have little incentive to lower costs for consumers.
