Revenue / 12.12.22
Keeping Customers Satisfied With Inflation on the Rise
It’s in the news. It’s on our grocery bills. It’s on everyone’s mind. Inflation is on the rise, and few industries have been spared the effects. And event ticketing customers have been feeling the pinch, too.
According to Allianz Partners USA data, ticket prices in primary markets hovered around $97 in 2019. Three years later, average ticket costs have risen to $114. Equally of note, trends observed in secondary ticket markets saw average ticket prices rise from $130 in 2019 to $164 in 2022.
Looking by event type, internal Allianz Partners data also revealed that from 2019 to 2022, the costs of attending concerts have risen 24% on average — compared to a 30% rise in average ticket prices for family-based events and a 22% rise in sporting events. By contrast, events in the arts actually decreased in cost by around 6%.
But inflation may not be the only driver of rising ticket prices; imbalances in supply and demand, simply regenerative surges in consumer desire to attend live events, and the in-venue costs of attending a live event is very different than just a few years ago.
When customers pay premium prices for tickets, they want premium experiences and a sense of security. Buying a ticket isn’t the same as buying a pair of shoes or a new TV — tangible objects with immediate reward. A ticket is the promise of an experience, an experience that may not occur for weeks or months.
For many, the experience of the pandemic has left a lasting awareness that the best laid plans can change at the last minute. However, that has not manifested into a lack of desire to attend events. What has changed is rising consumer expectations around flexibility and optionality — having a sense of security that, if things don’t go as planned, help is just a call away. According to an Allianz Partners survey1 conducted in summer 2022, 32% of event-goers traveled more than 100 miles to get to their event. Those fans feel the impacts of inflation most and have more factors that can prevent them from attending.
In an unstable economic environment, some customers may be more reluctant to buy a ticket to the event of their dreams. Offering a customer-focused insurance solution like Allianz Event Protection can help add value by improving customers’ experiences and building the confidence they need to buy tickets to unforgettable experiences. Our partners — including some of the most iconic brands in the industry — find that customers choose Allianz Event Protection time and time again, driving sustainable incremental business value.
While inflation and other factors may continue to drive environmental uncertainty, event ticket protection can help keep customers happy, confident and secure — even if prices continue to rise. By protecting themselves from the variety of situations covered by insurance, customers are more likely to have the best possible event experience, an experience that will help bring them back for more — even if they’re unable to attend.
Learn more about the Allianz Advantage at www.allianzpartners.com.
- AGA Service Company, Inc., 2022 Allianz Annual Event Ticket Insights Survey (July 08, 2022), distributed by INTIX International Ticketing Association, https://access.intix.org/Full-Article/allianz-reveals-new-event-ticketing-survey-results.
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This article was sponsored by Allianz Partners.
Tags: Revenue , Inflation