Why Are Viagogo Tickets So Expensive?
Viagogo is a popular resale website where people can buy and sell event tickets. However, many people have complained that Viagogo tickets are often sold at a much higher price than the original price. This has led to questions about why Viagogo tickets are so expensive. In this blog post, we will explore the reasons behind this phenomenon.
Viagogo’s Business Model
Before we dive into the reasons why Viagogo tickets are so expensive, it’s important to understand the company’s business model. Viagogo is a resale marketplace where people can buy and sell tickets for events such as concerts, sports games, and theater performances. The company charges sellers a fee for each transaction, and buyers pay a service fee on top of the ticket price.
Scarcity and Demand
One of the reasons why Viagogo tickets are so expensive is due to the concept of scarcity and demand. When an event is sold out or has only a limited number of tickets available, the demand for those tickets increases. Viagogo sellers can take advantage of this by selling their tickets at much higher prices than the face value. This is because fans who desperately want to attend the event will be willing to pay the higher prices to secure a ticket.
Viagogo’s Service Fees
Another factor that drives up the cost of Viagogo tickets is the service fees charged by the company. In addition to the face value of the ticket, buyers on Viagogo also have to pay a service fee. This fee can vary from event to event and can be as high as 25% of the ticket price. This means that even if the seller didn’t charge an exorbitant price for the ticket, the buyer still has to pay a significant amount just for the privilege of using Viagogo’s platform.
Viagogo’s Reselling Practices
Viagogo has been criticized for its reselling practices, which some suggest are manipulative and unethical. For example, the company has been accused of using misleading information to mislead buyers into purchasing tickets that may not be valid. Viagogo also lists tickets for sale before they have actually been released by the event organizers, which can lead to confusion and overpricing.
In conclusion, there are several reasons why Viagogo tickets are so expensive. The company’s business model relies on scarcity and demand, which means that sellers are able to charge high prices for tickets that are in high demand. Additionally, Viagogo’s service fees can significantly increase the price of a ticket, even if the seller didn’t charge an exorbitant price. Finally, the company’s reselling practices have been criticized as manipulative and unethical. While Viagogo can be a helpful platform for buying and selling event tickets, buyers should be aware of the potential for high prices and other issues.