Ticket Sellers and Buyers Alike Treasure the End of ‘Junk Fees’

The Federal Trade Commission (FTC) announced late last year that it would require live event promoters to disclose any fees up front when listing ticket prices. The FTC said consumers often see advertised prices for tickets to concerts and sporting events only to be surprised later at checkout with additional so-called “junk fees,” including processing fees and other extra charges. The new rule took effect Monday, May 12, and INTIX members are weighing in with their thoughts and observations.

Overall Opinion of the Rule

Matt Cooper, Vice President of Audience Services for Ensemble Arts Philly, is in favor of all-in pricing. “I think that it removes a significant point of friction in a customer’s purchase journey, whether online or in person,” he says. “Over the past several months, I’ve purchased tickets for multiple shows in New York where all-in pricing has been required for some time. Each time, it’s been a delight to see the price from the start and to get to the shopping cart without added required fees.”

The new rule is proving to be appealing from coast to coast. Andrew Bragman, Vice President of Ticket Operations for SoFi Stadium in Los Angeles and Hollywood Park, declares, “I think the rule is great, and we were very supportive. From the consumer perspective, it makes the pricing much easier to understand and should help level the playing field when shopping for tickets on different platforms and provide clarity of the final price much earlier in the customer journey.”

Another fan is Mitchell Klein, U.S. Vice President of Ticketing for ATG Entertainment, who says, “I think this has been a long time coming. I have personally been in favor of all-in pricing for a long time, and I support the efforts of the Biden administration and the FTC to enact such rules regarding up-front all-in pricing and fee transparency … although I don’t appreciate the nomenclature that defines all fees as ‘junk fees.’”

Other INTIX members expressing similarly positive sentiments include Ashley Voorhees, Vice President of Administrative Services for Omaha Performing Arts and INTIX Board Chair, who calls the new rule “a positive step for consumer rights;” Tracy Rae Noll, Director of Sales & Development Services at Penn State University, who “welcomes the change;” and Darren Coelho, Assistant Athletics Director, Ticket Operations for San Jose University, who says it is “a direct reflection of the transparency that the public wants as part of their buying experiences now.”

The Roll Out

So, in the early going, has the new policy been easy to roll out or a hardship? Jon Secunda, Director of Box Office Operations for the University of Nebraska Ohama’s Baxter Arena, says, “It has not been too difficult to roll out. Once we had a clear picture of the impact on the fee tables — from Ticketmaster, in our case — and the timings of which events were affected and when, we were OK with the process. We had already been doing all-in ticketing for many of our clients, so nothing was too new for us.”

Margo Malone, Senior Manager, Season Ticket Memberships & Special Projects for the San Francisco Giants, notes that the Giants’ Ticket Ops team led the effort in rolling out the changes to the team’s online purchase page. She notes, “The main difference is showing fans all-in pricing first, followed by the breakdown of the ticket price plus fees. On ProVenue, our ticketing system, when I process an order, only the total price is shown on the front end. This is helpful because now when I quote the ticket price to a customer, they know exactly what the cost per ticket will be including fees.”

Cooper chimes in, “Our roll out was straightforward. We worked with our ticketing and website partners and were able to make simple updates to our online purchase experience to share the all-in price from the start of the purchase journey, [and] we created resources for our marketing team to easily calculate all in prices to update marketing materials.” He adds that Ensemble Arts Philly’s biggest challenge has been “adjusting the scripts that our contact center and box office teams use to quote prices to guests.”

Voorhees adds, “Fortunately, the ticketing systems we use had the functionality already available, so it was as easy as flipping a switch. Our marketing team proactively put messaging out on our social channels and websites giving patrons a heads up before going through the buying process.”

Looking Ahead

While all eight interviewees for this article said customer response so far has been “minimal” and “muted,” all concerned have an eye toward the future and what the new rule means for ticketing and live events long term.

Bragman says, “I think the transparency this provides for the true cost of goods — in our case, tickets — will be significant. I’ve already appreciated it when looking for hotel rooms and not being surprised by fees at checkout. So, I think whether it’s tickets or other purchases covered by the rule, it’s a win for the customer and a customer service win for us as the venue.”

Coelho expressed similar sentiments: “You can no longer tease what may have been seen as an inexpensive ticket, only to have the transaction increase greatly at the end with other fees that the buyer didn't know about or anticipate. Consumers now will see a price range that shows them exactly what they are paying upfront.”

For his part, Klein is hopeful the new rule will boost consumer confidence in the ticketing industry and “result in fewer cart abandonments — all leading, of course, to increased conversion rates and overall sales.”

Noll says, “I expect the cart abandonment rates will drop significantly because patrons will know what they are paying at the point they choose their seats. Many organizations have flat fees — per order fees — that they will no longer be able to charge due to this ruling. They will either need to incorporate them into their per ticket fees or do away with them all together.”

Secunda was perhaps the most measured in his optimism. He says he is “hoping that customers will see this as a step in the right direction. However, one thing this does not do is truly get rid of the so-called ‘junk fees.’ In most cases, this is simply a reallocation of fees, not a reduction.”

Voorhees concluded, “This rule is about reshaping consumer expectations. In my opinion, as more people get used to seeing full prices upfront, industries not yet covered may face market pressure to follow suit.”

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