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Why are Ticketmaster Fees So High?

Ticketmaster is one of the most popular ticket-selling platforms in the world. Despite its popularity, the company has always been a subject of concerns and criticisms about its high service fees. Many people wonder why Ticketmaster charges such a high amount in fees.

In this article, we’ll discuss the various reasons why Ticketmaster fees are so high.

The Basics of Ticketmaster Fees

Ticketmaster charges fees on top of the ticket’s face value. The face value is the actual price of the ticket, while the fees are additional costs you pay for the service. The fees vary from one event to another and usually range between 15% and 25% of the ticket price.

The money collected by Ticketmaster from service fees is used to fund their operations, equipment, staffing costs, technology improvements, and various other expenses.

The Reasons Why Ticketmaster Fees are High

Here’s a list of reasons why Ticketmaster fees are so high:

Exclusive Agreements with Venues and Promoters

One of the main reasons why service fees are high on Ticketmaster is that the company has an exclusive agreement with various venues and event promoters. This agreement allows them to be the primary ticket agent for various live events held across the United States, Canada, and other parts of the world.

This exclusivity agreement means that the competition is limited and therefore allows Ticketmaster to charge higher service fees compared to other resale sites.

Technology Improvements

Ticketmaster invests a lot of money into technology improvements to enhance their customer experience. They invest in things such as their App, website, mobile app, and anti-scalping technologies. All of these improvements and technologies cost money, and as a result, service fees are charged to recoup these expenses.

Risk and Liability

Ticket sales come with risk and liability, meaning that Ticketmaster has to deal with charge-backs, counterfeit tickets, and other fraudulent activities. To offset such risks and liabilities, Ticketmaster charges higher fees to cover the associated costs of these issues.

Payment Processing Fees

Ticketmaster charges additional fees to cover the costs of payment processing, namely credit card fees, and other fees incurred during transactions. They don’t offer alternative payment options because it would be more expensive for them to cover such costs.

Independent Resellers

Ticketmaster also has added cost through their partnerships with independent resellers. Such resellers may purchase bulk tickets for certain events at a lower price than the average ticket price. They then resell these tickets for a higher fee on Ticketmaster. This means that some Ticketmaster fees are higher to offset the loss of revenue caused by offering their tickets at a lower cost to Independent reseller’s.

How to Avoid High Ticketmaster Fees

Despite ticketmaster charging high fees for their service, there some strategies you can use to avoid paying unnecessary fees. Here are a few tips:

Opt for the Will Call Option:

When you purchase your tickets through Ticketmaster, you may decide to pick them up at the box office rather than having them delivered to your home or office. This will not only save you from shipping fees, but you may also avoid additional F&B fees.

Comparison Shop:

When purchasing tickets, it’s always wise to compare prices from various websites to ensure you are getting the best deals while avoiding addition fees.

Be an Early Bird:

Early bird ticket purchases and presales usually come with lower fees compared to when tickets are released to the public.

Bulk Purchasing:

Group ticket purchases can help lower your per-ticket fees. Some group deals come with additional discounts and benefits, making it an ideal option for large purchases like company events, family gatherings and group trips.

Final Thoughts:

Although Ticketmaster fees may seem exorbitant, the company does offer several benefits to its clients, such as a stress-free ticket reservation process and an ample customer service team. In addition, the convenience of being able to purchase your tickets from one source, backed by the company’s proven track record of handling large amounts of tickets, indicates why people choose Ticketmaster frequently. Just bear in mind that high fees accompany their services.