Rising Concert Ticket Prices Spark Concerns About Inflation
Concert ticket prices are soaring, drawing attention from economists as the cost of live music experiences continues to climb. Fans are willing to splurge on tickets for renowned artists like Taylor Swift and Bruce Springsteen, who have not toured in years. However, these inflated prices were not previously factored into national inflation figures.
The United Kingdom has witnessed a significant increase in recreation and culture prices, with a 6.8% rise in the year leading up to May 2023, the fastest in three decades. Cultural services, particularly admission fees for live music events, have contributed to this surge. Calculating a precise “clean” price increase is challenging due to the subjective quality of music artists and the frequent variation in performers each month.
A glance at ticket reseller sites reveals the staggering prices fans are paying. On Stubhub, the cheapest seat for a July Taylor Swift show in Seattle costs $1,200, while tickets for an August Mexico City show are priced at $500 each.
Joel Barrios, a Beyoncé fan from Los Angeles, spent approximately $7,000 on three U.S. shows for himself and his friends, along with an additional $6,650 for several European shows. Carolina Candelas, who attended a Beyoncé concert in Barcelona with her family, acquired tickets easily through a presale link, spending 92 euros ($101) each.
Despite these substantial price increases, some question whether concert prices have a significant impact on overall inflation. Andy Gensler, executive editor of Pollstar, argues that attributing Beyoncé’s shows to inflation is a “ridiculous assertion.” While ticket prices have risen, mid-year figures have not shown a notable increase since May 2022, when U.S. inflation stood at 8.6%.
Demand continues to outpace supply, causing secondary market ticket prices to skyrocket to an average of 75% to 100% above face value, according to TD Cowen vice president of equity research Stephen Glagola.
Concerts featuring marquee names like Bruno Mars, Coldplay, and the Backstreet Boys are drawing large crowds in Asia. Fans from Malaysia and India are willing to pay a premium for quality entertainment, demonstrating a healthy growth in average ticket prices.
A recent survey by Eventbrite, a U.S. event management company, indicates that 80% of consumers want to attend events as much or more this year, despite the high cost and difficulty of securing tickets for major shows.
Michael Rapino, CEO of Live Nation Entertainment, reports a 41% increase in ticket sales and double-digit price hikes in the first quarter. In the UK, approximately 150,000 music enthusiasts paid £340 ($431) for tickets to June’s Glastonbury festival, showcasing the willingness to spend on such experiences.
Beth Cook, a social media director from Leeds, views the expense as worthwhile, noting the significance of events that bring people together. After missing out on such gatherings during the pandemic, people are now saving up to attend extraordinary shows like these.
The music industry’s ticket price surge serves as a reminder that concert experiences can have an impact on inflation, prompting further analysis and discussions among economists.
