Ian Taylor, head of ticketing and data management at Bigdog Live, looks at the psychology of ticket pricing and the buyer experience
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The European Festival Report 2017 reveals ticket prices have stabilised after an 8% spike last year, with fewer dates and a lack of big headliners keeping prices down
By Jon Chapple on 19 Dec 2017
The increase in ticket prices for European music festivals slowed this year, reveals IQ’s new European Festival Report 2017, with the average cost of a ticket increasing only marginally after a huge jump from 2015 to 2016.
Reflecting increased costs for talent and production, ticket prices spiralled 8% in 2016, with OpenAir St Gallen’s Christof Huber pointing to a combination of rising security/infrastructure costs and, especially, artist fees. In 2017, that growth has largely stabilised, increasing just 1% to €148.36 (from €146.22).
Keeping that average price pegged are a number of factors: while 49% of European Festival Report 2017 survey respondents raised their ticket prices in 2017, 36% maintained pricing at last year’s levels. With artist fees, production costs and security, in particular, costing more year on year, increasing ticket prices hardly come as a surprise.
However, a significant 11% of festivals around Europe decided to decrease their ticket prices in 2017. Some reasoned that fewer festival days warranted a price break, while others simply could not secure big-name headline acts and were therefore able to keep prices down.
One area of ticketing that has undergone significant surgery in the past 12 months is the way in which our surveyed festivals sell their tickets. In our 2016 report, we noted that, overall, 51% of tickets were sold via the festivals’ own websites, while third-party online sales accounted for 27% of total sales.
This year, the dominance of online sales outlets was even more pronounced, with online sales via festivals’ own websites increasing their share to an impressive 60%, while third-party website sales also gained a bigger slice of the pie with 30% of overall festival ticket sales.
Underlining the growing importance of online sales, two years ago our 2015 report recorded sales by festivals’ own websites of just 42%, while third-party online sales were 39%. This could suggest that festival management have determinedly taken control of their own ticketing inventory to try to improve profit margins, rather than pay percentages to third-party sellers. However, the fact that those third-party online platforms increased their share of sales in 2017 might point to a marketing fight-back by the ticketing specialists, albeit at the expense of call-centre workers.
Get the full lowdown on Europe’s festival summer, including insights into capacity and attendance, staffing, VIP options, overseas attendance, new tech and RFID, safety, concerts and more, in the European Festival Report 2017.
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