Ticketmaster is the largest primary ticket outlet in the United States. As the exclusive ticket provider for many major venues and artists, Ticketmaster sells millions of tickets to concerts, sporting events, and theater performances each year. But what happens to tickets that go unsold?
Why Ticketmaster Has Unsold Tickets
There are a few key reasons why Ticketmaster may have unsold tickets for an event:
- The event did not sell out – If there is low demand for an event, there may be unsold tickets even after the on-sale period ends.
- Overestimation of demand – Venues and artists may overestimate demand and have Ticketmaster sell more tickets than needed.
- Last minute cancellations – Some ticket buyers may cancel or return tickets close to the event date, leaving unsold tickets.
- Price too high – If ticket prices are set too high, it can lead to unsold ticket inventory.
- Bad weather – Poor weather conditions leading up to an outdoor event can dampen ticket sales.
Most events will have at least some unsold tickets, even major concerts and games. Promoters know that full sellouts are rare, so unsold tickets are expected to some degree. The challenge is minimizing the number of unsold tickets through careful planning and pricing.
What Ticketmaster Does with Unsold Ticket Inventory
When an event goes on sale, the tickets that do not immediately sell are still held in Ticketmaster’s inventory system. Here are the main ways Ticketmaster handles these unsold tickets:
1. Continue Listing Tickets for Sale
Ticketmaster will continue listing unsold tickets for sale through their website and app right up until the event occurs. Prices usually remain consistent, but may drop over time if demand is low. Ticketmaster has to pay fees to venues for every ticket sold, so they aim to sell through their direct channels first.
2. Release Tickets to Secondary Market Sites
As the event date approaches, Ticketmaster releases some unsold ticket inventory to resale/secondary market exchanges like VividSeats and StubHub. This allows sellers to list the tickets at any price, often below face value if demand is low. Ticketmaster can recoup some revenue from these already paid-for tickets instead of them going completely unsold.
3. Sell Ticket Packages and Bundled Deals
To boost sales of unsold tickets, Ticketmaster creates special ticket packages that bundle tickets with perks like pre-show receptions, exclusive merchandise, priority entry, VIP parking, meet-and-greets, and more. These bundled deals provide additional value and incentivize fans to purchase tickets they may have been on the fence about.
4. Offer Discounted Resale Tickets on Gametime
Gametime is Ticketmaster’s last-minute ticket app that focuses on reselling unsold tickets at big discounts, often up to 50% below box office prices. Gametime only lists tickets in the 24-72 hours leading up to an event in order to liquidate inventory. Gamtime pricing is dynamic, with prices dropping in real-time based on supply and demand.
5. Use for Promotions and Giveaways
Ticketmaster will often use unsold tickets to run ticket giveaways and promotions to create buzz leading up to an event. They may give away unsold tickets to radio stations, media partners, contests, influencers, and loyal customers. Free tickets can help generate word of mouth exposure and goodwill with fans and partners.
6. Donate Tickets for Charity Auctions
Donating unsold tickets to charity auctions is another way Ticketmaster aims to get some value from excess inventory while also doing a good deed. Charities can auction off tickets and exclusive experiences to dedicated fans and use the proceeds to fund their causes.
What Happens to Completely Unsold Tickets?
For the small portion of tickets that go completely unsold, Ticketmaster has the following options:
Give Tickets Away for Free
Right before a show, venues may do some last minute giveaways of unsold tickets to fill seats and generate a buzz inside the arena or stadium. They essentially let some fans in for free rather than have empty seats.
Sell at Box Office Before Event
If an event is not sold out, box office reps will try to sell any leftover tickets on-site for at least face value. The box office is only a small portion of overall sales, but can move some last minute tickets.
Unused Tickets are Voided
Tickets unsold by the time the event begins are voided out of Ticketmaster’s system so they can no longer be sold or used. The venue and artist absorb the loss on these unsold tickets that have essentially gone to waste.
Case Study: What Ticketmaster Did with Unsold Super Bowl Tickets
Here is a look at how Ticketmaster handled unsold ticket inventory for a specific high-profile event – Super Bowl LIII in 2019:
- The Super Bowl between the L.A. Rams and New England Patriots took place at the Mercedes-Benz Stadium in Atlanta on February 3, 2019.
- In the months leading up to the game, ticket sales were below expectations. Thousands of seats remained unsold just a week before the game.
- To help move unsold tickets, Ticketmaster bundled tickets with fan experiences like pre-game sideline passes.
- The Monday before the Super Bowl, Ticketmaster’s partner Gametime had over 5,000 tickets still available, selling for as low as $2,900 just hours before kickoff.
- The Rams returned hundreds of unused tickets to the NFL, unable to sell their allotted tickets.
- In the end, the stadium was not full. The official attendance was 70,081 in the 75,000 seat stadium.
Even the Super Bowl has trouble selling out! This example shows how Ticketmaster used promotional bundles, Gametime discounts, and giveaways to sell down unsold inventory as much as possible in the final hours.
Reasons for High Number of Unsold Tickets
When an event has an abnormally high number of unsold tickets, here are some possible contributing factors:
Overpriced Tickets
If ticket prices are far above perceived value for the event, fewer fans will be willing to pay and tickets will go unsold. Promoters may get greedy and overprice tickets relative to demand.
Too Much Competition
When multiple major concerts, games, or shows take place near the same time in a city, there are only so many entertainment dollars to go around. Having too many options can spread demand thin.
Underperforming Team or Artist
A sports team with a losing record or a musician with declining popularity will have trouble filling seats. Fans are less likely to pay to see teams or acts that are past their prime.
Lack of Marketing and Promotion
With so much entertainment competition, events need robust advertising and promotion to stand out and drive ticket sales. Insufficient marketing budgets can hamper awareness and sales.
Bad Location or Venue
Choosing a location or venue that is remote or difficult to access can deter ticket buyers, even for popular teams and big name artists. The venue must be conveniently located for the target demographic.
External Factors Hurting Attendance
Issues like a weak economy, high transportation costs, weather events, and public health concerns can reduce consumers’ ability and willingness to attend events.
Best Practices for Minimizing Unsold Tickets
Here are some best practices Ticketmaster and event organizers should follow to minimize unsold ticket inventories:
- Conduct market research to accurately project demand and optimal pricing.
- Use dynamic pricing to adjust prices over time based on current sales data.
- Allocate some seats for special bundled packages and promotions.
- Develop robust event marketing plans across a range of channels.
- Offer easy and affordable transportation options to/from venue.
- Form partnerships with media, travel, and retail brands for cross-promotion.
- Reward loyal fans with presales and VIP treatment to drive repeat attendance.
Conclusion
In summary, Ticketmaster uses a variety of methods to maximize sales of unsold ticket inventory leading up to and on the day of events. These include continued direct sales, secondary exchanges, bundled deals, marketplace discounts, giveaways, donations, and on-site box office sales. Completely unsold tickets are voided out and represent lost revenue for venues, artists, and promoters. Careful planning of pricing, promotions, venue selection and more can minimize unsold ticket volumes.
