The economics of concert ticket prices

​​​​​​​When the UK-based rock band Oasis tickets for summer 2025 went on sal​​​​​​​e ​​​​​​​a few weeks ago, they were priced at £148.50 ($199). The scramble for tickets for shows in London, Cardiff, and Manchester was frantic, with online queues of around 80,000 people waiting for 5 or 6 hours to reach their purchasing point. When many fans reached the front of the queue, they found the tickets were now priced at £355 ($476).

The price increase can be described as surge or dynamic pricing ​​​​​​​when produce​​​​​​​rs change prices as the demand for their product changes over time. Surge pricing is often seen in the markets for services such as taxis, airlines and hotels when firms increase their prices when demand is price inelastic at peak times and firms decrease their prices when demand is price elastic at off-peak times. In the Oasis ticket price situation, a high demand meant the demand for tickets was price inelastic, and prices were increased. 

An important question is why concert tickets have become so expensive. The last time Oasis played in the UK in 2009, the tickets cost £45 ($60), nearly a 200 per cent increase in price. The annual increase in the average concert ticket price for major concerts is currently 20 per cent, and the average ticket price for the top 100 tours is £102 ($137).

The demand side factors behind this price increase could be considered in terms of the popularity of the ‘experience economy’. People now want experiences rather than physical goods, and a large music event attended by 80,000 people is very attractive to consumers. It is also worth considering the demographic of people who go to music concerts now compared to years ago. Many people in their 40s, 50s and 60s now go to live music in a way they did not years ago. This means there are more potential and older consumers with more spending power than the young people who used to go to concerts. 

There are also supply-side factors that can explain high ticket prices. The artists themselves are looking at ticket revenue as the major source of their income because streaming income, whilst high for major artists, does not match the income artists want for playing live. Big stars like Oasis, Taylor Swift and Bruce Springsteen can demand a very high return for a music event. It is also worth noting that the number of the very biggest names people want to see live is actually quite limited. Outside the cost of the artist, there are also the venue costs, which are high for state-of-the-art stadiums such as Wembley (London), Parc de Princes (Paris), and the Hard Rock Stadium (Miami). On top of this, there are extra costs that major music concerts involve, such as giant video screens, security, ticketing and event management. 

Many commentators and even politicians have become involved in the price of concert tickets after the highly publicised Oasis ticket publicity. It is not easy to intervene in cases like this unless the pricing is part of monopoly power and is anti-competitive. Concert tickets are not a necessity, and the high price of concert tickets fulfils its signalling, incentive, and rationing functions.

Some possible questions to discuss with a class

1. What is surge pricing?

2. Why are ticket prices for the best artists price inelastic?

3. What factors have led to increased demand for concert tickets?

4. What supply factors have increased the price of concert tickets?

5. Should the government intervene in the market for concert tickets to make them more affordable?