The Society of Ticket Agents and Retailers, better known as “STAR”, is a selfregulatory body representing the UK entertainment ticketing industry. A list of
STAR agents, all of whom are official, authorised ticket retailers, can be found
at STAR.ORG.UK along with practical advice on how to purchase tickets safely.
When considering the subject of booking fees, it is important to understand how the UK
Ticketing Industry works and how prices are set. The Face Value of a ticket is that set by the
venue or promoter, inclusive of VAT, and it should always be possible to buy a ticket at that
price, usually from the venue box office when booking in person. Of course this method of
purchase isn't always convenient for customers, and so tickets are made available online and
over the phone. In these instances, the Face Value of a ticket is paid to the promoter and
the Booking Fee, which is also subject to VAT, is added to the cost of each ticket as agreed
with the promoter and retained by the ticket agent. Included in the Booking Fee will be a
number of elements such as the credit card commission (that is payable on the total value of
the purchase) the actual cost of processing the transaction (in terms of staffing costs,
technology and overheads) as well, of course, an element of profit for the ticket agency as a
commercial enterprise.
From the promoter’s perspective, they will engage with an official, authorised retailer in order
to access the marketing and/or distribution channels that the agent can incrementally add to
the production's own sales and marketing mix. In order to deploy this marketing and
distribution the official, authorised agent will need to either invest in sales and marketing
activity on behalf of the production or remunerate the distribution channel for their sales and
marketing activity, or both. In a high percentage of cases, the official, authorised agent will
also need to invest capital in ticket purchases from the promoter in advance of sales, and will
require a return on that investment, and risk, in order to discharge its responsibilities to both
its shareholders and employees.
In respect of delivery charges, which can frequently be a focus for criticism, these will vary
according to the method by which tickets are dispatched. Once again, this is a service being
provided by a third party, the ticket agent, and it is reasonable for a charge to be made for
this element of the service. These charges are usually a one-off fee added to the total
transaction rather than per ticket. There are a number of factors at play here. One is that the
event owner may require the tickets are sent by secure means which incurs an additional
charge to the Royal Mail or courier company. Secure mail also increases staff time in
logging and dispatching the item. Other delivery methods such as making the ticket available
for collection at the venue are also service items for which it is reasonable for the third party
ticket agent to make a charge as part of the convenience they are providing to customers.
Charges for “Print At Home” tickets often appear, on the surface, to be a reasonable target
for criticism, but it is essential to note that these tickets require access control mechanisms at
the venue which are provided by the ticket agent, at the agent’s expense, for the
convenience of customers. In addition, we are in the early stages of “Print At Home” being
widely available and major official ticket agents play a key role in the Research and
Development of the ticketing technology which has transformed ticket buying over the last
thirty years. Income from booking and delivery charges underpins this development work
and it is very likely that in future, when the technology infrastructure is more universal, that
charges for printing tickets at home will be reduced.
One might ask the question as to why all these charges can't be tied up into one price? The
answer is that they can. A promoter could choose to charge a single price through all
authorised outlets that includes the amount that is to be retained by the ticket agent, but that
decision lies with the promoter, not the agent. STAR has been asked in the past whether it
could regulate booking fees charged by agents but this would be inappropriate as it could be
construed as being price-fixing and therefore anti-competitive. A 2005 Market Study of Ticket
Agents in the UK by the Office of Fair Trading considered that there was sufficient
competition between ticket agents to ensure that it did not lead to higher prices for
consumers.
The official, authorised ticket market, as represented by STAR members, plays a significant
and contributory part to the tremendous success of live entertainment in the UK. STAR sets
standards for customer service and information, especially clarity of pricing, through its Code
of Practice and we also offer customers an independent means of redress in the event of an
unresolved problem with a ticket purchase from a STAR member. In an average year,
sales for London’s West End alone account for well in access of 10 million tickets, and a high
percentage of these tickets will be sold via official, authorised STAR agents. For many
events, tickets will be allocated to a variety of agents, who combine to make a world-leading
industry that employs thousands of professionals, across a diverse range of disciplines
throughout the UK, providing a managed service for event organisers, venues, promoters,
and, most importantly, the consumer.
30 November 2012