Ticket fees, also known as service fees or convenience fees, refer to the additional costs added to the base price of tickets for concerts, sporting events, theater performances, and other entertainment events. These extra fees are charged by ticket sellers and event promoters to cover their overhead costs and generate additional profit from ticket sales.
Why are there so many fees when you buy tickets?
There are several reasons why multiple fees get attached to ticket prices:
- Processing fees – These cover the cost of processing the ticket order and printing and shipping the tickets. They account for the ticket seller’s staff, equipment, and technology expenses.
- Service fees – This is essentially the ticket seller’s commission. Large ticket sellers like Ticketmaster charge a percentage fee per ticket to make a profit.
- Facility fees – This goes to the venue owner and covers their overhead costs of hosting the event.
- Order handling fees – Covers fulfillment costs like customer service, online ticket platforms, and mailing.
- Convenience fees – Applied to tickets bought online or by phone to account for the convenience of not having to go to the box office.
- Tax and municipal fees – Local taxes and fees mandated by city governments.
So in summary, the various fees cover the costs and profits of the ticket seller, venue, promoters, and local governments that are involved in hosting the event and getting the tickets to the customers.
Are all those extra fees legit?
While convenience and processing fees have some validity in covering overhead expenses, many people feel that the total amount of fees added to tickets these days is excessive and exploitative. Here are some of the criticisms about excessive ticket fees:
- Fee amounts are often very high in relation to the base ticket price. For popular shows, the fees can equal or even exceed the ticket’s face value.
- Fees pad profits for ticket sellers. The larger sellers like Ticketmaster have dominant market power and leverage that to charge higher fees.
- Dynamic pricing results in much higher fees for in-demand tickets purchased closer to the event date.
- Lack of transparency about where exactly all the fees go and what they cover.
- Facility fees and order processing fees are charged per ticket, so multiply rapidly when buying multiple tickets.
- No choice for consumers wanting to avoid the fees when buying from the major ticket companies.
While some fees reasonably cover costs, many complain the system takes advantage of passionate fans excited to see their favorite music acts or sports teams. The excessive fees have fueled a perception among consumers of being nickeled-and-dimed by greedy ticket sellers.
Are there any ways around the fees when buying tickets?
Here are some tips that may help avoid or reduce ticket fees:
- Buy direct – Buy tickets directly from the venue’s box office if possible. This avoids fees charged by middlemen sellers.
- Fan club presales – Artists will sometimes offer fee-free presale tickets for fan club members.
- Discount codes – Look for presale discount codes that waive processing fees.
- Wait for general public onsale – Fees sometimes get lower once the box office is selling to general public.
- Fewer expensive delivery options – Opt for cheaper e-ticket delivery instead of paper tickets sent by mail.
- Class action lawsuits – Get a cut of fee refunds when customers win class action suits against Ticketmaster.
- Reseller sites – Sometimes fees are lower on secondary market reseller sites like StubHub.
While helpful, these tips don’t eliminate all fees. For highly in-demand shows and events, fees will likely still be applied due to high ticket demand giving sellers greater power to maximize revenue.
What is the fan perspective on high ticket fees?
Fans are often frustrated and vocal about excessive ticket fees charged today for live entertainment events. Some common complaints from ticket buyers include:
- Sticker shock seeing the total ticket cost balloon with fees.
- Confusion over a breakdown of all the different fees and what they actually cover.
- Expensive fees limiting how many shows budget-conscious fans can attend.
- Being priced out of buying good seats due to high demand jacking up fees.
- Perception that fees are a cash grab by greedy corporations at fans’ expense.
- Lack of fee transparency and consistency between different events and sellers.
Fans accept reasonable costs for services provided around ticketing. But the prevailing sentiment seems to be that fees today are overly burdensome and make enjoying live entertainment too costly for the average fan. There is a shared feeling among concert and event goers of being taken advantage of by those involved in the event ticketing ecosystem.
Promoter | Fees Charged | Fee Description |
---|---|---|
Ticketmaster | $15 | Service fee |
LiveNation | $12 | Order processing fee |
Local Arena | $5 | Facility charge |
This table shows examples of different fees charged by various parties involved in ticketing concerts and events.
Are artists and musicians also frustrated by fees?
Yes, both artists and fans dislike the high fees added to tickets these days. Musicians also get upset with excessive fees for a few key reasons:
- High fees make concert tickets more expensive, which can reduce ticket sales for their shows if fans are priced out.
- Artists don’t see any of the fee revenue, but the high fees can indirectly create negativity directed unfairly at them.
- Dynamic pricing formulas used by sellers like Ticketmaster can drive fees way up for their biggest fans trying to buy good seats.
- Excessive fees reflect poorly on an artist’s brand image of having affordable shows for regular fans.
High-profile acts from Bruce Springsteen to The Foo Fighters have publicly voiced complaints about unreasonable ticketing fees and how this gouges their fans. Some bands have tried innovating with lower cost ticketing options for concerts where they have more control over pricing.
Case Study: Pearl Jam vs. Ticketmaster
In 1994, the band Pearl Jam took a public stand against Ticketmaster’s excessive fees by refusing to use them for their concert tickets. They tried to book shows only at venues not exclusively contracted with Ticketmaster.
However, since Ticketmaster had exclusive deals with many major venues at the time, Pearl Jam had difficulty booking suitable concert halls for their tour. They ended up canceling some shows before the entire tour collapsed.
The debacle demonstrated Ticketmaster’s stronghold over event ticketing in the mid-90s. It highlighted how even top artists didn’t have full control over ticket pricing for their shows.
Does ticket resale activity increase fees?
Yes, the rampant ticket resale market also puts upward pressure on fees for tickets to in-demand events. Here’s how resellers like StubHub contribute to higher fees:
- Resellers buy up lots of tickets immediately using bots, reducing general public supply.
- Less supply allows primary and secondary sellers to charge higher prices and fees.
- Resellers list tickets on secondary sites with large markups baked in along with their own fees.
- Primary sellers respond by also raising prices and fees to capitalize on demand before resellers.
Anti-bot laws aim to crack down on this resale market manipulation. But the dependence on secondary sellers for sold out events gives them leverage to impose high fees that get passed on to desperate fans.
How have fees impacted the live music industry?
The proliferation of high ticket fees has had some broader impacts across the live entertainment business:
- Reduced concert attendance – Fans get priced out especially for arena and stadium shows.
- Shift to festivals – All-inclusive festival passes appeal to value-focused fans vs. single shows.
- Fewer musicians can tour successfully – High fees make touring untenable for those without big fan bases.
- Fan distrust – Both artists and fans resent the opaque fee system imposed on them.
- Public relations headaches – Venues, promoters, and artists face PR backlash when fans complain about fees.
- Class action lawsuits – Fan fury has led to lawsuits challenging the legality of inflated fees.
The live music sector has thrived overall recently, especially for top grossing acts. But many industry insiders argue excessive fees are making concerts too costly for regular fans and smaller artists. There is increasing pressure to make live entertainment more affordable again.
What can be done about high ticketing fees?
Here are some measures that could potentially help improve the situation around fees:
- More all-inclusive ticketing – Cover fees, taxes, etc. in initial list price so total cost is clear upfront.
- Fee caps – Regulate maximum limits for different fee types to prevent gouging.
- Enhanced fee transparency – Require detailed breakdowns on all fees to see what is justified.
- More rival ticket sellers – Prevent monopolies like Ticketmaster where possible to encourage competition and fee pressure.
- Anti-bot laws – Better regulate the resale market and restricted bot ticket buying.
- Venue fee waivers – Encourage venues to waive facility fees for cheaper tickets.
- Fan club presales – More artist presales for loyal fans help them avoid fees.
- Bundling fees – Bundle unavoidable fees together into a single understandable charge.
There likely is no single solution. Employing a mix of innovative ticketing strategies, fan-friendly policies, and sensible regulations around fee limits could help restore sanity around ticket fees.
Conclusion
The myriad fees that get added onto ticket prices today frequently feel excessive, opaque, and frustrating for fans. Processing fees cover real costs, but convenience and service fees are often viewed as greedy revenue grabs benefitting middlemen like Ticketmaster most of all. Unfortunately fans have limited power or options to avoid the fees for in-demand shows and events. More transparency around fee application and enhanced regulations could help ease some of the common complaints from ticked-off fans. But ultimately, the live entertainment industry may need a major ticketing model overhaul to make shows affordable again.