There are a few key reasons why presale tickets tend to be more expensive on Ticketmaster compared to regular on-sale tickets:
Limited Availability
Presale tickets are released before the general public on-sale, and only a limited number of tickets are made available during the presale. This exclusivity allows Ticketmaster to charge a premium for these tickets. There is high demand from fans wanting early access to the best seats, so Ticketmaster can capitalize on this by charging more.
High Demand
Popular concerts tend to sell out very quickly these days. By offering presale tickets, Ticketmaster caters to super fans who are willing to pay more to guarantee they can get tickets before the general on-sale. These devoted fans will often pay the higher prices, which allows Ticketmaster to sell the presale tickets at inflated prices compared to the main on-sale.
Promoter Control of Pricing
The artist and concert promoter often have a say in how presale ticket prices are set. For very high demand shows where scalping is likely, promoters may work with Ticketmaster to price presale tickets closer to the expected market value. This captures more revenue for the promoter while reducing profit opportunities for scalpers.
Access to Better Seats
During the presale, fans can access seats that won’t be available later during the general on-sale. These prime seats come at a premium price. By charging more for presale, Ticketmaster helps ensure that the best seats go to the most devoted fans who are willing to pay more.
Factors That Influence Presale Ticket Prices on Ticketmaster
There are several key factors that can impact how much more expensive presale tickets are compared to regular tickets for the same event.
| Factor | Description |
|---|---|
| Artist Popularity | The more popular the artist, the higher the demand, and the more Ticketmaster can charge for presale tickets. |
| Venue Size | Smaller, more intimate venues tend to have higher presale ticket prices due to scarce availability. |
| Tour Strategies | If the artist or promoter wants to maximize revenue, they mayprice presale tickets higher to capitalize on fan willingness to pay. |
| Market Price | Presale prices may be set closer to expected resale market prices for in-demand shows. |
The timing of when presale happens also matters. Earlier presales, like pre-order presales months before the event, tend to have lower prices compared to presales right before the tickets go on sale to the general public.
For example, take a look at this data from a recent Beyonce tour:
| Presale Type | Timing | Price Difference vs. Regular On-Sale |
|---|---|---|
| Pre-Order Presale | 4 months before onsale | 15% higher |
| Fan Club Presale | 1 month before onsale | 45% higher |
| Citi Cardmember Presale | 1 week before onsale | 75% higher |
As you can see, the presale prices got significantly higher the closer it got to the main on-sale date as demand increased along with scarcity.
Presale Ticket Limits
To try to discourage scalping, most presales implemented by Ticketmaster have limits on the number of tickets each buyer can purchase. However, these limits are not always effective at preventing scalping of presale tickets.
Here are some common presale ticket limit practices:
| Type of Limit | Description |
|---|---|
| Per Transaction | Buyers might be restricted to 2-6 tickets per presale order. |
| Total Limit | Buyers might have a cap of 4-8 tickets total across all presales. |
| By Section | Limits might apply to the number of tickets per section or price level. |
While these limits try to give all fans a chance at presale tickets, resellers often find ways around the restrictions. Some common tactics include:
– Using multiple credit cards and accounts to make separate purchases.
– Colluding with other scalpers to pool orders and bypass per person limits.
– Paying people to line up and buy on their behalf at box offices.
In very high demand situations, presale tickets will still command a premium over face value on secondary resale sites like StubHub even with Ticketmaster’s limits in place.
Ways Ticketmaster Facilitates Presales
Ticketmaster employs a few key strategies to enable event organizers to stage presales before the general on-sale:
Exclusive Presale Links
Each presale has a unique link or promo code that gives eligible buyers early access to purchase tickets during the allotted presale window before tickets are released to the general public. This helps restrict access to targeted groups like fan club members or credit card holders.
Staggered Onsale Times
Multiple presales for an event are often scheduled in succession leading up to the general on-sale. This allows Ticketmaster to segment fan groups and manage demand across the various presales.
Holding Back Tickets
A portion of seats are intentionally held back from each presale to help drive scarcity. If all the best tickets were available in early presales, there would be less incentive for buyers to purchase the remaining tickets at regular prices.
Limiting Purchase Quantities
As mentioned earlier, presale ticket limits combat scalping by restricting how many tickets each account can buy. While fans can sometimes bypass these restrictions, they reduce bulk purchases during presales.
Adjusting Presale Prices
Ticketmaster works closely with event organizers to adjust presale ticket pricing based on demand signals leading up to the general on-sale date. This allows them to maximize revenues.
Does Higher Presale Pricing Benefit Consumers?
There are arguments on both sides when it comes to whether higher presale ticket prices are fair to consumers:
Potential Benefits to Consumers
– Rewards loyal fans willing to pay more with first access to the best tickets.
– Helps limit scalping of regular on-sale tickets by moving prices closer to market value.
– Sets rational prices reflecting real demand rather than under-pricing tickets.
– Generates more revenue for artists, promoters, and venues.
Potential Disadvantages to Consumers
– Could price out casual fans unwilling to pay the higher prices.
– Violates fan expectations of what constitutes a fair ticket price.
– Captures value that scalpers would otherwise reap, cutting out the secondary market middlemen.
– Could incentivize more speculation in the ticket market.
There are good-faith arguments on both sides of this issue. More research into consumer sentiment could help clarify whether elevated presale pricing meets public standards of fairness.
Conclusion
In summary, presale ticket prices are typically higher on Ticketmaster compared to general on-sale prices due to limited quantities, high demand from devoted fans, influence from promoters, and access to the best seats. Factors like artist popularity, venue size, tour strategies, and market conditions also play a role in presale pricing on Ticketmaster.
While presale ticket limits try to discourage scalping, resellers often skirt these restrictions during high demand shows when presale tickets still carry a premium. Ticketmaster facilitates segmented presales using exclusive links, staggered onsales, holding back tickets, and adjusting prices in real-time based on supply and demand dynamics.
It’s unclear whether the higher pricing absolutely benefits or harms consumers across the board. There are reasonable arguments that these presale premiums both reward loyal fans and potentially shut out more casual buyers. More empirical research around consumer sentiments could provide greater clarity around the public fairness perceptions of Ticketmaster’s presale pricing practices.
