The Music Festival Last Minute Ticket Purchase Surge.

There has been a gradual shift over time towards a ‘just in time’ music festival ticket purchase which is causing a late surge in ticket sales revenue for organisers. This can have significant financial and operational consequences for organisers. How can they manage the late surge ticket purchase risk which is now becoming more common.

Numerous factors are influencing when festival-goers make a purchasing decision for event tickets. The increase in the number of music festivals taking place every year, often over the same weekend dates, has provided more choice for potential ticket buyers. In addition, recent economic pressure and the rise in the cost of living have put financial pressure on ticket buyers who are now more selective choosing the best value for money festival. Anecdotal evidence suggests that as much as 50% of tickets are purchased within the last 30 days prior to the live event dates. What impact does this have for festival organisers and how can they best manage this.

Planning.
The forward planning that organisers start a year or more in advance of live event dates will always include estimates for ticket sales revenue by month. Analysis of historical ticket sales data can help to predict likely sales volumes over time and must include aspects like cross referencing press announcements, marketing campaigns and ticket price offers. This can help indicate the cause and effect of different activities on ticket sales. Having a great CRM system can assist analysis and planning as long as previous ticket buyers have been tagged with their purchase date along with related marketing activity triggers. This ensures that marketing campaigns are more refined for the coming year with specific targeting to generate earlier ticket purchase. 

Financial Impact.
The biggest threat to music festival entities is cash flow and with the bulk of ticket sales taking plane in the final 30 days it leaves them exposed to funding pressure. Organisers often must make deposit payments months before a live date for artist bookings as well as for contractors supplying stages, backlines and fencing for example. Many organisers may arrange credit services or bridging loans to take them through periods when expenses are being incurred and they have little revenue from ticket sales. In the early planning phase, the only likely revenue will come from sponsors and vendors who may provide a deposit to secure participation. However, it is likely that expenditure will outpace revenue in the period up to the final 2 months prior to event dates.

Operational Impact.
The operational logistics planned for a festival are based on anticipated attendance and organisers need to employ a dynamic implementation approach to cater for fewer or more festival-goers than expected. Organisers will recruit volunteers based on the anticipated workload, but this becomes more challenging if the final number of festival-goers is unknown. In many cases it may be better to recruit more than needed possibly creating a reserve list who can be called on if attendance numbers are higher. Vendors supplying food and beverages will bring supplies to an event to meet expected demand but if the final attendance numbers are unknown, it makes it difficult to plan to avoid waste or running out of supplies.

Marketing Campaign Management.
There is always a correlation between marketing campaign activity and ticket sales and thorough analysis of historical data can help create a robust marketing plan for a forthcoming event. Launching and announcing early bird ticket sales that are in limited supply can create an urgency among potential ticket buyers seeking the best value deals. Using updated data in future campaigns can create a FOMO (fear of missing out) where organisers state a high percentage of tickets sold already. Having a comprehensive understanding of the impact of seasonality and pricing can help to refine how and when campaigns are run. Targeting previous ticket buyers using direct communications like email or SMS will usually generate the fastest conversion to a ticket sale. This should be supported by coordinated advertising campaigns on social media channels to generate new sales and support conversion of previous buyers. The volume of marketing campaign activity should be ramped up in the final 40 days prior to the event to keep the brand and ticket availability status in front of potential buyers.

Managing the Impact of Late Surge Ticket Buying.
If anticipated ticket sales volumes are lower than expected organisers may sometimes take the tough decision to cancel or downsize an event. Understanding the breakeven point for the financials is crucial and typically organisers may choose a date (21 days before the event date) where they trigger this if they haven’t hit 60% of breakeven. A late surge in ticket sales can put pressure on ticketing systems so organisers should ensure that they are using robust systems capable of handling sudden high volumes. The ticketing system should also include all available payment options that are mobile friendly.

For festival organisers planning their next event using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, site planning, cashless payments and contactless ordering.

Image by Nicholas Derio Palacios via Pexels

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