Inflation, VIP culture, and dynamic prices drive up ticket prices for big concerts

Music fans’ complaints when they point to the more expensive concert tickets of the great pop rock personalities do not respond to subjective sentiment, but rather on a real basis. It is a gradual process that goes back a long time and that I accelerated with ‘impact’ pandemicRevitalization of tours. The sum of the cumulative factors (with inflation and increased cost of materials at the fore) added to the emergence of a “VIP culture” and the distorting effect of reselling and Pervasive dynamic pricingwhich climbs any stock market value and gets you double the initial fee.

Madonna’s recent campaigns Beyoncé has sounded the alarm. voice like a Virgin She offered a wide range of prices in advance, from 40 to 300 euros (ie 45.50 and 333.50 including management fees), for his concerts on November 1 and 2 at Palau Sant Jordi, the only ones he will perform in Spain, despite entries such as Those on the track fall into the unprecedented range of €200 (226.50) and €250 (283.50).

In addition, the “VIP” packages, which contain many sweets and exclusive interest, have reached more than a thousand euros. And the most remarkable thing is the dynamic mechanism applied to the (very few) tickets left for sale: on Friday, some were offered for Displays From day 1 to 793 euros More expenses.

“premium” categories

The same for Beyoncé, where the initial price range for the June 8 concert at the Estadi Olímpic, from 62.50 to 209.50 euros (plus expenses), gave way to the dynamic prices of tickets that remain available. to 601.50 euros. in categories belovedthe show dubbed “vip2 pure honey on stage” presents It passes on stage at a price of 2377 euros.

It is noted that the lower price ranges generally suffer relative differences (treatment: €50.50 in 2016; €51 in 2022), and that the more desirable a site is, the more it asserts itself. This is usually where the escalation is. Let’s take a look at Coldplay: tickets start at €56.50 for their four concerts in May at the Estadi (in 2014 they cost €60), while in the higher categories the numbers are out of control: up to 170 euros (in 2014 there were 90), and new categories such as the “My universe lounge” package, at 485 euros plus expenses of 64.50. with Elton John In Palau Sant Jordi it has gone from the €50.50-90 range (2014) to €68-324.

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The most specific places

At the same time, dynamic prices enter the scene, which adapt to demand and starred in sharp episodes in the US: more than 6,000 euros were offered last summer for a Bruce Springsteen ticket. In Spain, this system, similar to that of flights or VTC vehicles, was applied to performances in Spain Cirque du Soleil and at the festival Shop Starlight from Marbella And only in the past few months have I come to concerts with a large capacity. According to Ticketmaster, these are “very high quality” tickets 5 and 7% of capacity.

to neo room, Founder and CEO of Doctor Music, these rates “help the artist get extra income that would otherwise swell the pockets of illegal sellers,” the promoter wondered. “Why does this system cause so much strangeness?”, Considering that “airlines and hotels have been using it for decades ”. He made a visual detail on the Barcelona Liceu website, which reads: “The price of seats will increase when the space exceeds 70% occupancy ”.

Material cost

he High cost of production materials and energy It was cited as a related factor in the post-pandemic price hike. “There, the increase is easily 15% & rdquor ;, Appreciation Tito Ramoneda Vice President of APM (Association of Music Promoters) and Project Head. the management fee, A controversial chapter, explained because “behind every purchase there is a computer system that ensures that the buyer has access on a mobile phone at that moment, and that is worth the money.” Another thing is resale prices, Always expelled, and this in his opinion generates confusion. “People may have the perception that this is the official price,” he notes. “There are those who do not know what to buy in resale & rdquo;.

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Neo Sala sees another key in The emergence of “VIP culture”. Other times, “there were no VIP booths in nightclubs, priority lanes in amusement parks, or packages Exclusively in sports, which is the order of the day, ”explains the promoter, who refers to the packages offered by Barcelona in the league, with the “VIP” offer rising to 3915 euros.

Those unique prices

Today, it seems pretty crazy to remember that back in the ’80s and ’90s, Bruce Springsteen, Madonna or the Rolling Stones filled stadiums with unique prices for the entire venue. Is it arguable that standing in line for hours and running when the doors open to get in the front row is more fair to a fan than selling those seats to the highest bidder? “I don’t think so,” estimates Tito Ramoneda. “It is not civilized rdquor;.

Expanding the framework, the long-term price evolution has been quite sharp. 40 years ago, V.I Summer 1983star parties ranged from 1,200 pesetas (7.2 euros) to terrible fjords and 2000 (12 euros) Supertramp, which They represent 1 and 1.7%, respectively, of the average wage of time. today is 226.50 of Madonna’s average “ticket” accounted for 12.8% of the salary. Of course, current productions are much more expensive (complex sets, high-end “LED” screens, “louder” sound systems), but the rise in prices is also a reflection of the shift in the music business to steer after declining profits from recordings.

Demand doubled

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And after all, a factor that is not trivial: the exponential increase in public demand. Without it, the putter would be doomed to cross correction. But tickets for idols, especially the most expensive ones, are sold out very often. “There are now more people interested in seeing a live artist than at other times, and the number of concerts an artist can give a year is the same, since years still contain 365 days ”New Sala notes. After the pandemic, a certain urgency is added to make up for lost time by raising prices (we are talking about one of the most affected sectors), although “in the end, there is a risk: if the tickets are too expensive, they are too expensive,” said Tito Ramoneda.

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stressful context, live music context, where “intense competition” is observed & rdquor; between promoters and where “Festivals come to pay a lot for bunkers & rdquor; Refers to the vice president of APM. Artists Play Emotional Cards: The Last Tour (Elton John), Epic Comeback On the brink of death (Springsteen with the E Street Band), Greatest Hits (Madonna) & mldr; Almost as if the world ended with every concert. It works now.

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