How are ticket prices and fees determined? (2024)

How are ticket prices and fees determined?

There are two main types of tickets sold on Ticketmaster — standard admission tickets and resale tickets. How ticket prices and fees are determined depends on the type of ticket you’re purchasing.

When it comes to standard tickets: artists, promoters, sports leagues, or teams decide how they want to sell their tickets on Ticketmaster’s marketplace. That includes setting the face value prices, determining how many tickets to sell, and when to put them on sale.

For resale tickets: the listing price is determined by the seller, which includes fans, season ticket holders, and professional resellers. Often a resale price exceeds the initial face value set by the artist or team.

In any case, ticket fees (which can include a service fee, order processing fee, and the occasional delivery fee) are determined by and shared between the parties who have a hand in making live events happen including venues, Ticketmaster, sports teams, leagues and promoters.

How are ticket prices and fees determined? (1)

What is the face value price of a ticket?

Face value refers to the price of the ticket (before fees and taxes are added). Artists, sports teams or promoters set the face value ticket price, which Ticketmaster doesn’t keep any portion of. They can also decide to change that price at any time.

Why am I seeing all-in pricing on some events?

In the case of events utilizing all-in pricing, you will see the total cost upfront including the face value price and fees. Artists, venues and sports teams can choose to use Ticketmaster’s All-In Pricing.

Additionally, some states have started to pass laws requiring all-in pricing, so any events in New York, Tennessee and Connecticut will automatically have all-in pricing shown. All-in pricing has also been instituted for all new shows in venues operated by Live Nation as of September 25, 2023. Ticketmaster continues to advocate for a national all-in pricing law.

What do the different fees mean?

Ticket fees are shared between Ticketmaster, venues, sports teams, leagues, promoters, and other parties who have a hand in making live events happen.

Here’s a detailed breakdown of each type of fee.

Service Fee: In exchange for the rights to sell their tickets, venues and sports teams share a portion of the fees collected. A service fee is charged once per ticket. Service fees may apply to in-person box office purchases depending on the venue.

Venues use their portion of the service fee to cover the costs of putting on live events. That includes employing local staff — from the people who scan your tickets, to security staff and ushers — and the day-to-day expenses of running a building throughout the year.

As a ticketing vendor selected by the venue, Ticketmaster’s portion covers the costs of the technology, people, and resources needed to provide a safe and secure ticket-buying experience. It also covers the equipment and support we provide venues with, helping them to manage their box office and seamlessly get everyone into the venue on event day.

Other than the service fee, here are other types of fees that may apply:

Order Processing Fee: This fee is charged once per order and is shared between venues or teams and Ticketmaster. Order processing fees do not apply to in-person box office purchases.

Delivery Fee: For most events, tickets are mobile and delivered directly to your Ticketmaster account for free — so your phone is your ticket. But delivery methods can vary from event to event, and you may have the option to choose physical delivery, which includes a fee.

Facility Charge: Venues use this fee to cover the costs of hosting live events, including staffing, insurance, and paying suppliers. Facility charges may vary by event and can be raised or lowered over time. Ticketmaster does not keep any portion of the facility charge.

In addition to fees collected, the total cost of the ticket also includes applicable city, state, and local taxes (provincial and Federal Goods and Services taxes in Canada).

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How are ticket prices and fees determined? (2024)

FAQs

How are ticket prices determined? ›

Face value refers to the price of the ticket (before fees and taxes are added). Artists, sports teams or promoters set the face value ticket price, which Ticketmaster doesn't keep any portion of. They can also decide to change that price at any time.

How do artists determine ticket prices? ›

Promoters are the connection between the act and the venue. They officially set the ticket prices, and they take on the loss if the concert doesn't generate enough ticket sales to cover what the artist has been guaranteed. They organize and publicize the shows, and those costs go into the price of the ticket.

What is the formula for ticket price? ›

The formula for calculating the Average Ticket Price is as follows: Total Revenue Earned / Number of Tickets Sold = Average Ticket Price For example, if your business has earned $3,000 in revenue from selling 20 tickets, the average ticket price would be:$3,000 / 20 = $150.

What determines the ticket fare? ›

The basic principles of supply and demand significantly influence ticket prices. Popular routes with high demand may see higher ticket prices, especially during peak travel seasons. Additionally, the level of competition on a specific route can impact pricing, with more airlines typically leading to lower fares.

Why are there fees on tickets? ›

The ticket fee is a surcharge that helps cover a venue's costs. Rapino's point is that the venue needs to cover its costs, so it's going to collect money to cover them, no matter what. In a normal scenario, the consumer helps cover those costs by paying a surcharge directly to the venue.

How do you calculate cost per ticket? ›

Speaking broadly, you calculate your Cost Per Ticket by adding up all of your help desk's operating expenses for a given period (typically a month) and then dividing that total by the number of tickets you resolved during that same period.

How do they determine the prices they charge to their customers? ›

The person pricing your product(s) must consider many factors such as cost of production, financial goals, and consumer demographics. It is important that you perform market research prior to determining the prices you will assign to your products or services.

How are ticketing systems priced? ›

Most ticketing software systems charge several dollars per ticket. A typical price is one dollar per ticket +2% of the ticket price. So, an organization selling 10,000 tickets in a year at $25 per ticket would spend approximately $15,000 on the ticketing system.

Who controls ticket prices? ›

Tickets are actually priced by artists and teams. It's their show, they get to decide what it costs to get in. The NFL tickets on Ticketmaster were priced by the home teams, concert tickets were priced by the performer's business teams, Monster Jam tickets were priced by its producer (Feld Entertainment), and so forth.

How do you determine face value for tickets? ›

Face value is the price of the ticket before any service fees or shipping / handling charges are added. When a fan resells a ticket, the resale price might exceed the original face value of the ticket.

How much does Taylor Swift make per concert? ›

Taylor Swift: concerts, fans, merchandise, money

What is known is what she will pocket for each planned concert. According to Billboard, the artist has earned between 11 and 13 million dollars for each of the dates belonging to The Eras Tour.

How are ticket prices made? ›

Factors Influencing Ticket Pricing

Your ticket pricing strategy is shaped by numerous factors. Market demand, competition, price elasticity, and perceived value all intersect to influence the process of price setting. Gauge the market demand for your event by examining ticket prices for similar types of events.

How to calculate how much to charge for an event? ›

Add the total cost of the food, venue, entertainment, and misc. expenses together and divide that number by the amount of people you want to attend. That will tell you the average cost for each attendee. Next, you'll need to determine how much profit you want to make from the event to set your break-even point.

How are prices calculated? ›

Formula for pricing a product

As a guideline, you can use this formula to establish the selling price of your product or service: Selling price = Direct costs + Indirect costs + Profit margin.

Who decides concert ticket prices? ›

If your money is at risk, you pay attention to pricing. Nevertheless, promoters don't set prices, artists do. The artist and her business team listen to the promoter's input and then decide. This is the case even with a promoter as large as Live Nation or AEG.

Do ticket prices go down closer to an event? ›

It might seem counterintuitive, but you're generally not going to get a cheaper ticket by buying early. That's just not how the laws of supply and demand work. “You'll spend a little less the closer you get to the show,” Erskine says.

How do airlines decide the price? ›

Factors such as profiling of travelers, length of advance purchase, current sales volume, competition, peak dates, level of overbooking, and fuel prices all play a role in determining ticket prices.

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