Leadership / 07.06.22
New York Ticket-Fee Law Offers Hope of Transparency for Sports Fans
Sportico (06/30/22) Lawrence, Jesse
New York Governor Kathy Hochul is expected to approve a law that would require ticket-selling sites to disclose all fees upfront. TicketIQ and FanIQ founder Jesse Lawrence writes that when properly enforced, the bill would establish a baseline of pricing transparency that saves ticket buyers time, money and aggravation. At the root of the frustration is the practice of drip pricing, or not disclosing fees upfront. Research showed events with drip pricing had a 14% higher conversion rate than those where fees were disclosed upfront; moreover, the average transaction price for events with drip pricing was 21% higher than events without. "In addition to impacting conversion rates at a listing level, drip-pricing also appears to skew the consumer's point of reference for what constitutes a 'good' deal for the event overall," according to Lawrence. He argues that enforcement of the new law can only be effective with penalties that are sufficiently high to not just be a cost of doing business, while private-market advertising platforms like Google and Facebook also must do their part by properly vetting ticketing advertisers.
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