Taylor Swift’s Sold-Out Tour Brings a Massive Shock to Ticket Reselling
Taylor Swift is one of the most successful singers of our time, and her tours are always star-studded and packed with fans. With high demand for her shows, her recent Eras tour has attracted not only dedicated Swifties but also scalpers who are willing to pay thousands of dollars for a chance to see her perform. This has caused a shock in ticket reselling, prompting legislators to take action to curb the use of bots in online ticket purchases.
Legislation in Texas
The issue of bots buying tickets has long been a matter of concern for legislators in Texas and other states. In response to this, Gov. Greg Abbott signed a bill into law that would prevent the use of bots in online ticket purchases. The main aim of this law is to ensure that more seats are available to fans and to cut into the business of scalping.
Interview with Economist Allison Schrager
Economist and Bloomberg columnist Allison Schrager was interviewed about the effectiveness of this legislation. She notes that while it is a good start, banning bots may not be enough as scalpers will find other ways to get the tickets they want.
The Role of Scalpers in the Ticket Market
There is no doubt that concert tickets are highly sought-after commodities. In many cases, demand far outstrips supply. This has created a marketplace, which scalpers have filled. These players buy tickets at face value then resell them at higher prices to make a profit.
The Problem with Higher Prices
While some people may be willing to pay high prices for tickets, not everyone can afford it. Schrager notes that sometimes, higher prices are what equilibrate to the market, but not everyone can afford those prices. Unfortunately, the secondary market fills an important role in meeting demand in the absence of more dynamic pricing in the primary market.
The Need for Dynamic Pricing
Demand-based pricing could be the solution to the issue of scalpers taking advantage of the market’s inefficiencies. Dynamic pricing would increase or decrease prices based on factors such as demand, availability, and the artist’s preferences. This would work to price tickets at market value, reducing the incentive for scalpers to buy tickets for less and resell them for more.
Other states are also taking action to address the issue of ticket scalping. Earlier this year, U.S. Senator John Cornyn from Texas announced plans to file legislation requiring ticket sites such as Ticketmaster and StubHub to disclose prices and fees upfront. Other states such as New York, Oregon, and Pennsylvania have also enacted laws to address ticketing issues, which range from the proliferation of bots to the sale of unsigned tickets.
Taylor Swift’s Eras Tour
In recent news, Taylor Swift’s Eras tour is making headlines. With sold-out shows across the country, her tour is on track to be the biggest selling tour of her career. Fans are spending an average of $1,300 on each show, including tickets, travel, and elaborate costumes.
Swift’s Contribution to Local Economies
Fortune reports that the tour could potentially generate $4.6 billion for local economies throughout the U.S. based on how much ticket holders are spending. Cities such as Las Vegas have already seen tourism spike as a result of her tour. Taylor’s first two Chicago concerts resulted in an all-time-high average of 44,383 booked hotel rooms each night.
Taylor Swift’s Charitable Contributions
Swift has not only contributed to local economies with her sold-out shows but she has also made charitable contributions along the way. Gleaners Community Food Bank of Southeastern Michigan announced that she made a large donation to the organization amid her two nights performing at Detroit’s Ford Field. The food bank announced the donation on Facebook, thanking her for her contribution.
Taylor Swift’s Eras tour is a testament to her success and dedicated fan base. At the same time, it has highlighted some serious issues with the ticketing market that legislators are scrambling to address. Though legislation such as Texas’ BOT bill is a start, much more can be done to protect fans from high scalper prices. The implementation of dynamic pricing could be the solution, making ticket prices affordable and scalpers’ activities unnecessary.
1. How much are Taylor Swift tickets on average?
On average, fans are spending $1,300 on each show, including tickets, travel, and elaborate costumes.
2. How much could Taylor Swift’s Eras tour generate for local economies?
Based on how much ticket holders are spending, her tour could potentially generate $4.6 billion for local economies throughout the U.S.
3. What is scalping?
Scalping is the practice of reselling tickets for events such as concerts, sports games, or plays at a price higher than their face value.
4. What is dynamic pricing?
Dynamic pricing is a pricing strategy that involves adjusting prices based on factors such as demand, availability, and the artist’s preferences.
5. How is Taylor Swift contributing to charity during her Eras tour?
Taylor Swift is contributing to charity by donating to food banks in states throughout her tour’s run, including Arizona, Florida, and Michigan.