A Qualtrics study conducted on behalf of Credit Karma calls out the rising costs of in-person entertainment, like concerts, movies, and live sports. “Fee creep,” or the slow-but-sure increase of supplemental costs associated with event participation, is paywalls many fans out of events once regularly attended.
Four out of five Americans polled report a noticeable fee increase over the last year. Additionally, the Qualtrics study says 56% of Americans cite sky-high fees as a major catalyst in their decisions to abstain from events.
Noticeable Cost Increases Impact ‘Fun Budgets’
Amid inflation, consumers’ allotted entertainment budgets have taken a hit. Fees like tips and processing costs mount, but do not discriminate. Fans of nonessential experiences from dining out to comic conventions feel the impact. The Qualtrics and Credit Karma survey respondents report that fee creep has even reached rental car acquisition, theme park admission, and hotels and lodging.
Gen Z and millennials admit they’ve cut corners to allow for expanded event budgets. Around 35% of Gen Z and 33% of millennials claim they’ve reduced restaurant purchases. Additionally, younger generations admit they’ve pulled funds from savings accounts to cover exorbitant ticket costs and fees (30% of Gen Z and 21% of millennials). Some admit they have forgone must-have purchases to pay for event tickets, with 19% of Gen Z and 14% of millennials reporting skipped meals and other necessities.
Americans’ Attitudes Toward Ticket Costs
Of the consumers polled, 72% admit willingness to accept additional fees intermittently, though 6% express reluctance to accept supplemental fees in excess of $50. More than half of survey respondents say $30 is a fee cost they’re comfortable with.
Event-ready Gen Z and millennials are willing to shell out more for events, contrasting with older generations. Around 90% of Gen Z and 85% of millennials admit they’re still willing to buy tickets despite higher fees. The onslaught of fees deter Gen Xers and baby boomers; 33% of Gen Xers and 45% of baby boomers are unwilling to fold on fees.
Concessions Costs Climb
Americans additionally report that fees are overwhelming outside of ticket purchases. Live event snack staples, like hot dogs and nachos, have felt the heat from entertainment cost surges. During the last NFL season, tenured treats like hot dogs and beer ran patrons around $6 and $8, respectively.
One-third of all consumers report visiting a stadium at least once in the first six months of 2023. More than three-quarters of those visitors purchased food or drinks from stadium concessions, with the average buyer spending more than $30 on food per event attended. With these costs, baseball game accompaniments like popcorn and pretzels put a never-before-seen dent in attendee’s wallets.
Potential Remedies
Controversial event titan Ticketmaster’s utilization of “dynamic pricing” allows the brand to price tickets based on consumer demand. Alongside its new pricing methodology, the company is leaning into VIP experiences to garner interest.
The brand, alongside other ticket retailers like StubHub, Vivid Seats, and SeatGeek, allows buyers to list third-party seats for resale. Though buying tickets from other fans feels like a foolproof way to cut out middlemen, the method famously sparked consumer and government scrutiny following Ticketmaster’s mismanagement of ticket sales for Taylor Swift’s Eras Tour. The sale of Swift’s seats saw bot swarms, swiping tickets from human fans only to resell them at astronomical price points.
Ticketmaster has also incorporated Klarna, a popular “buy now, pay later” service, into its sales portal. Klarna covers upfront costs, giving consumers the chance to pay in installments. The company noted overwhelming interest among younger generations, with 87% of Gen Z and 89% of millennials finding value in flexible payment options.
Post-pandemic audiences aren’t interested in abandoning events altogether. The nickel-and-diming of American eventgoers through surge pricing and frustrating fees pushes more Americans to pinch pennies in unorthodox ways. Despite consumers reporting tighter budgets, event interest hasn’t slowed. Experts expect movie, concert, and sporting event ticket sales to increase through 2028.
