Dramatic increase in demand for live entertainment and its prices
In recent years, live entertainment has experienced a remarkable rebound. A recent Deloitte survey of about 3,500 adults in the U.S. found that 61% of respondents attended at least one live event in the past six months. This percentage is higher among younger generations, with 73% of Gen Z (born 1997-2012) and 71% of Millennials (born 1981-1996) attending, while it decreases among older generations, with 51% of Baby Boomers (born 1946-1964) and 47% of those born before 1946 attending.
However, the fact that tickets are not financially accessible remains a significant barrier for many. According to the same survey, nearly 60% of American consumers said they didn't attend a live event due to high costs. Additionally, there are certain events that people prefer to attend in person more than others. For example, 57% prefer to see a concert live (47% from home), while for a sports event, the corresponding percentage is 32% (68% from home).
What's behind funflation?
One of the main factors driving the phenomenon of funflation is dynamic pricing, a strategy that adjusts ticket prices based on demand. Initially used by airlines, it has become standard for many platforms selling tickets to major events.
This approach can maximize profits for event organ
izers or ticket platforms, but it also leads to disappointment for fans. Some artists, like Taylor Swift, have resisted this practice to protect their audience, while others accept it, knowing that fans will still pay for tickets to see their favorite artists, regardless of the price.
Is all this sustainable?
However, the increase in ticket prices is also linked to rising production costs for live events, affecting everything from labor to equipment. As production costs continue to rise, some artists have canceled tours or moved concerts to smaller venues. These changes raise questions about whether the live events industry will continue to grow at the same pace.