What is the Ticketmaster selling service fee?

The Ticketmaster service fee, sometimes referred to as a convenience fee, is an additional charge added to the base ticket price when purchasing tickets through Ticketmaster. This fee helps cover the costs of operating the Ticketmaster platform and services.

What does the Ticketmaster service fee pay for?

The Ticketmaster service fee helps pay for a variety of services and operational costs, including:

• Technology infrastructure – Maintaining and operating the website, mobile apps, API, and related technology to power Ticketmaster’s platform.
• Customer service – Staffing call centers to provide customer support for ticket purchases and inquiries.
• Payment processing – Credit card processing fees and technology to securely handle customer payments.
• Venue partnerships – Contracts and integrations with venues, promoters, sports teams, and event organizers to sell their tickets.
• Marketing and advertising – Promoting events and driving ticket sales through ads, emails, social media, and other channels.
• Anti-fraud and security – Detecting and preventing bots, scalpers, fraudulent sales, and other security risks.

In addition to these operational expenses, the fees also represent Ticketmaster’s profit margin on ticket sales. As an intermediary between venues and ticket buyers, Ticketmaster charges a premium for the convenience and reliability their platform provides.

How is the service fee calculated?

Ticketmaster does not publish an exact formula for how their fees are calculated. The fee varies based on factors like:

• The base ticket price – Higher priced tickets generally have a higher service fee.
• The event type and estimated demand – More popular events carry higher service fees.
• The sales channel – Fees are lower for season ticket packages and higher for single event sales.
• Promotions and discounts – Fees are calculated after promotions and discounts are applied.

Rather than a flat percentage, the fee structure appears to follow a dynamic pricing model designed to maximize Ticketmaster’s profits. Some key characteristics of their pricing include:

• Fees range between 10% to 25% of the base ticket price, with most around 15% to 20%.
• There is sometimes a flat “processing fee” per ticket purchased.
• Lower priced tickets may carry higher percentage fees.
• Higher demand events carry fees on the higher end of the 10-25% range.
• Season ticket packages and group sales have lower fees around 10%-15%.

A sample fee calculation

Here is an example of how the fees could be calculated on a $100 concert ticket purchased through Ticketmaster:

For a higher demand, more expensive ticket, the fees could be considerably higher:

Why does Ticketmaster charge service fees?

Ticketmaster charges these fees for a few key reasons:

1. To cover their operating costs and make a profit – As a business, service fees are their primary revenue source.
2. Lack of competition – With limited platforms for buying tickets, consumers have little choice but to pay the fees if they want official event tickets.
3. High demand events – For popular concerts and games, Ticketmaster can charge higher fees that fans will reluctantly pay.
4. Convenience factor – Fees provide revenue despite customers choosing Ticketmaster for the convenience over other options.

Essentially, Ticketmaster charges service fees because people continue to pay them. While fans and watchdog groups have criticized the fees for being excessive, the fees persist due to Ticketmaster’s dominant market position in event ticketing.

Are Ticketmaster service fees refundable?

In most cases, Ticketmaster’s service fees are non-refundable if you choose to cancel or return tickets. The fees are generally considered part of the total ticket price. However, refund policies can vary in certain situations:

• If an event is canceled or rescheduled, all fees are refunded along with the base ticket price.
• If tickets are faulty or purchases are disputed, fees may be refunded at Ticketmaster’s discretion.
• Season ticket packages, group sales, and other bulk purchases sometimes offer full or partial refunds of fees.
• Refunds within a short grace period (e.g. 24-48 hours) may include a refund of fees in some cases.

But for standard single ticket purchases, Ticketmaster will usually retain the full amount of fees on refunded tickets. The company considers the fees compensation for the time and effort spent processing the sale and managing the ticketing up until refund.

Strategies for avoiding Ticketmaster fees

While Ticketmaster fees are hard to avoid entirely, here are some strategies fans can use to minimize fees when buying tickets:

• Buy directly from the venue box office – Cut out the middleman and avoid fees, if boxes office sales are available.
• Use fan club or artist presales – Special presales sometimes have reduced or no fees for fan club members.
• Buy group or season tickets – Larger packages have lower fees per ticket.
• Buy early – Fees tend to rise closer to event dates; buy early to lock in lower fees.
• Buy from resellers – Third party sellers sometimes absorb fees to offer better prices.
• Use ticket resale sites – Sites like StubHub let buyers avoid fees charged during initial sales.

However, these methods are not always guaranteed to avoid fees, especially for major events. Ticketmaster and partner venues also work to restrict many alternative sources of ticket sales.

Are Ticketmaster service fees legal?

Ticketmaster’s service fees are generally considered legal, though they exist in a gray area and are controversial. Some key points on the legality of their fees include:

• Fees are technically legal as Ticketmaster is a private company charging for services.
• As the biggest primary ticket seller, Ticketmaster has enormous pricing power.
• Their exclusive ticket sale contracts lock out competition that could lower fees.
• Fees arguably exploit a captive market of fans who have no alternative.
• Class action lawsuits over fees have failed due a lack of pricing regulations.
• U.S. does not currently regulate ticket sale and fee practices through law.

In summary, the fees fall into a legal gray area but have avoided being found formally illegal due to Ticketmaster’s market control and lack of consumer protection regulation around event ticketing in the United States.

Could Ticketmaster service fees be made illegal?

There are a few ways that Ticketmaster’s unpopular services fees could potentially face legal restriction:

1. Federal or state laws capping ticket fees – New legislation limiting fees would likely face lobbying opposition.
2. Challenging anti-competitive practices – Regulators could reopen cases on Ticketmaster’s anti-competitive business practices.
3. Unlocking exclusive ticket sale contracts – Venues could be pressured to open up sales to more competition.
4. Fraud and bias cases – Lawsuits could allege systematically biased or deceptive fees.
5. Consumer protection regulations – The FTC or state agencies may decide to intervene on behalf of consumers.

However, Ticketmaster’s entrenched position in the industry and the complexities around event pricing make disruptive legislation or legal actions challenging. Absent major regulatory changes, Ticketmaster’s flexible and opaque fee practices are likely to persist for the foreseeable future.

Conclusion

In summary, Ticketmaster service fees represent a major additional cost layered onto event ticket prices. The variable and often hefty fees help Ticketmaster generate revenue and profits, powered by their limited competition, high demand events, and strong market position. While fans frequently complain about the fees, legal and competitive constraints have largely prevented meaningful changes to Ticketmaster’s fee practices. Consumers can employ some fee avoidance strategies, but broadly face an uphill battle against Ticketmaster’s dominant ticketing services and the lack of regulation around fees and pricing transparency in event ticketing.