Fees jack up the price of buying tickets to events
By Amanda Knowles | 2nd July 2007
Summer is the season for concerts. Whether it’s large touring festivals, big name acts, or reunited bands, tickets for these shows can become quite expensive. High ticket prices may cause some potential concert goers to opt out, but those who are willing to shell out the big bucks are in for a surprise when the end cost for a ticket may be up to 50 percent higher than face value. A vast majority of tickets are subject to various fees and charges, making already soaring ticket prices even higher. The main culprit of this practice is Ticketmaster, who is the most common and pervasive dealer of tickets in the United States.
Ticketmaster was founded in 1978, but it did not garner attention until Jay Pritzker, of the family who owns the Hyatt hotel chain, bought the company for $4 million and launched it as the premier ticket seller in the United States. Ticketmaster then moved to the top of the headlines in 1994, when the alternative rock band Pearl Jam was outspoken about high fees associated with each ticket. On tour to promote their second album, the band wanted to keep ticket prices under $20. When they discovered that $18 tickets for their show were being sold for $21.50 through Ticketmaster, they were outraged. It happened to be that at this same time Congress was conducting an investigation into Ticketmaster’s practices, and the investigation committee invited Pearl Jam to file a statement about their experience. Eventually the government dropped all charges, and Pearl Jam filed a class action suit against the ticket giant that did not yield any results. Even though no legal action was taken against Ticketmaster, these events brought the practices of the company to the public’s attention.
Total ticket prices purchased from Ticketmaster are broken down into six categories: face value of the ticket, facility charge, order processing fee, delivery price, and convenience charge. The face value of tickets is set by the concert venue, promoter, or artist and generally includes tax. It is not determined by Ticketmaster. Facility charges are set and determined by the venue, which then receives the profits from these fees. Tickets purchased from Ticketmaster may be subject to a delivery charge. If tickets are purchased in person (either at a venue’s box office or at a Ticketmaster ticket outlet), then there is no delivery charge; however, if tickets are purchased over the Internet or through the phone reservation system, there may be a delivery charge added to the cost. A delivery fee will be added to all tickets that are sent using FedEx, UPS, or any other type of priority mail, or if customers choose to print their tickets at home. Tickets that are delivered via standard United States mail or picked up at a venue’s Will Call (an option that is not available at all venues) will not subject to a delivery fee. Ticketmaster also adds a convenience charge to the price of most tickets, and many times this fee is the most expensive. Both Ticketmaster and concert promoters determine the fee amount based on costs for the event, which varies but averages to around $10 per ticket. The convenience charge is to help offset Ticketmaster’s costs of running local ticket outlets, telephone systems, and its website. The purpose of this fee, according to
Ticketmaster.com, is to cover the costs of “ticket requests” and other services, including “taking and maintaining your order…on ticketing systems, arranging for shipping and/or coordinating with the box office will call.” Typically, a convenience charge is added when tickets are purchased online, over the phone, or at a ticket outlet. Ticketmaster purchases at a venue’s box office usually do not include a convenience charge.
It is often difficult to purchase tickets from another vendor, because Ticketmaster is the exclusive ticket seller to most major venues in the nation. In Chicago, it controls ticket sales at all of the major venues except the Sears Centre in Hoffman Estates, which is new. Anyone wanting to see a show at such venues like First Midwest Bank Amphitheatre, Allstate Arena, Aragon Ballroom, and the Rosemont (to name a few) is required to purchase their tickets through Ticketmaster and pay for the extra fees.
The Peoria Civic Center (PCC) is no exception. Ticketmaster is the exclusive seller of tickets at the PCC. Tickets purchased through [url]www.peoriaciviccenter.com[/url] are routed through Ticketmaster.com, forcing customers to pay the normal fees. Tickets may also be purchased through the box office, whether in person or over the phone. A major credit card is required for all ticket sales over the phone, and a handling fee of $2 will be added to each ticket.
Since Ticketmaster has a hold over most ticket sales in the nation, two of the biggest concert promoters, Live Nation (Ticketmaster’s largest client) and Jam Productions, have decided to offer tickets to consumers in certain areas without the usual service charges. The closest locations are in Chicago. Live Nation is selling tickets at the Chicago House of Blues box office for all of its summer shows at the First Midwest Bank Amphitheatre in Tinely Park, the Alpine Valley Music Theatre in Wisconsin, and the Charter One Pavilion on Northerly Island. Jam Productions has Chicago box offices at the Vice Theatre and Park West in Lincoln where tickets for all Jam Production concerts are available without the typical Ticketmaster fees. However, this does not guarantee that all tickets are sold without extra fees. For example, tickets bought at the House of Blues box office still charge a $2 box office fee and a $2 facility charge.
Usually, if consumers want to bypass fees associated with ticket purchases, the best course of action is to go directly to a venue’s box office. Tickets purchased at a venue’s box office, even if through Ticketmaster, usually do not include any convenience or order processing charges but may include facility fees. While this practice is helpful, many venues do not have a box office, or a venue’s box office may only be opened when there is an event or when tickets go on sale.
Change in how tickets are sold may be in the near future. Concert promoter Live Nation is Ticketmaster’s largest client, but the contract between the two is set to expire next year. Once the contract is up, Live Nation may begin selling tickets through its own ticketing sites, Next Ticketing and MusicToday.com, which will rival Ticketmaster. Live Nation is not commenting on what steps will be taken once its contract with Ticketmaster expires.