14, June 2024

The current state of secondary ticketing: growth, challenges & innovations

Introduction

Introduction


The secondary ticketing market has evolved into a crucial segment of the live event industry, encompassing a wide range of events, including sports, concerts, theatre, and more. With advancements in technology and shifts in consumer behaviour, this market is continuously transforming. 


Key challenges in the industry

Key challenges in the industry


1. Ticket scalping and overpricing: a major challenge for the event industry

One of the most pressing issues in the event industry is ticket scalping, where tickets are resold at significantly higher prices than their original value. This practice is problematic for several reasons. Firstly, it limits access for loyal customers, who are often priced out of the market by inflated costs. True fans, especially those with limited budgets, are frequently unable to purchase tickets at these extortionate prices.

Scalping creates a situation where the additional revenue generated from the inflated prices does not benefit the artists, event organisers, or the overall event experience. Instead of this extra income being reinvested into enhancing the event production, it ends up in the pockets of scalpers. This results in a loss of potential funds that could have been used to improve event quality, artist performances, and audience experience.

Solution: Implementing a price cap feature can prevent overpricing. This ensures tickets are resold at fair prices, close to their original value, making events accessible to genuine fans.


2. Fraudulent practices: risks to buyers and the event's integrity

The secondary ticket market is also rife with fraudulent practices, including the sale of counterfeit tickets and deceptive selling tactics by unscrupulous sellers. These practices pose significant risks to unsuspecting buyers who may end up with invalid tickets, leading to a negative experience and financial loss. Additionally, this undermines the integrity of the ticketing process and can damage the reputation of the event and organisers.

Solution: The secondary ticket market is also rife with fraudulent practices, including the sale of counterfeit tickets and deceptive selling tactics by unscrupulous sellers. These practices pose significant risks to unsuspecting buyers, who may end up with invalid tickets, leading to a negative experience and financial loss. Additionally, this undermines the integrity of the ticketing process and can damage the reputation of the event and organisers.

In closed ecosystems, advanced verification systems play a pivotal role in combating fraudulent practices. These systems utilise unique barcode formats, RFID chips, or encrypted digital tickets to ensure the authenticity of tickets.

Besides the payment, barcodes are the fraudulent element in ticketing. Therefore, we’re seeing delayed fulfilment becoming the international standard to minimise the window of opportunity to abuse this fulfilment method. Before fulfilling the ticket, a token with the right of entrance can be exchanged within a closed ecosystem for instance between Eventix and TicketSwap when Sealed tickets is activated.

An additional layer of security would be to use an innovative fulfilment method which would make it harder to commit fraud. For instance, mobile-only tickets, dynamic barcodes or scanning tokens directly from a wallet with NFC enabled.

Additionally, ticket tokenisation enhances security by assigning digital tokens to each ticket, making them tamper-proof and traceable. Partnering with event organisers further strengthens this ecosystem, fostering trust and accountability. By leveraging these solutions, the secondary ticketing market can effectively mitigate risks, safeguard buyers, and uphold the integrity of events and their organisers.

Eventix tip

Every Eventix ticket can be sold safely via TicketSwap or Tixel. Each Eventix ticket is invalidated once it is sold through TicketSwap or Tixel and is replaced with a completely new ticket with a unique barcode.

3. Impact on artists and event organisers: strained relations with fans

The prevalence of secondary ticketing, marked by scalping and fraud, can negatively affect the reputation of artists and event organisers. Fans who encounter high ticket prices or fall victim to fraud may associate these negative experiences with the artists or the event itself, leading to strained relationships. This can diminish fan loyalty and potentially impact future ticket sales and the overall success of events.

Solution: Establishing partnerships between event organisers and secondary ticketing platforms can lead to a controlled and transparent resale environment. These partnerships can include sharing ticketing data, enforcing fair pricing policies, and ensuring a portion of resale profits goes back to the artists or event organisers.


4. Lack of consumer protection

Consumers face risks such as fraud, overpricing, and lack of support in case of event cancellations or ticket invalidity.

Solution: Secure platforms can offer consumer protection services like money-back guarantees for invalid tickets and comprehensive customer support. These platforms can also implement features like real-time ticket validation to ensure ticket legitimacy at the event entry point.



5. Data security and privacy concerns

With the increasing amount of personal data shared online, unsecured ticketing platforms may expose consumers to data breaches and privacy violations.

Solution: Adhering to strict data protection standards like GDPR (General Data Protection Regulation) is essential. Secure platforms should encrypt sensitive information, employ robust cybersecurity measures, and offer transparent privacy policies. Ensuring user anonymity during transactions can also enhance privacy protection.


Growth and dynamics of the market

Growth and dynamics of the market


The secondary ticketing market has seen remarkable growth over recent years. This surge can be attributed to the increasing popularity of online platforms, which provide a convenient and efficient medium for ticket resale. These platforms cater to a wide array of events, making them a go-to option for many ticket holders and seekers.


Innovative features

Innovative features


  • Secure transactions: With features like Secure Swap, TicketSwap guarantees the uniqueness of every resold ticket, thus mitigating fraud risks.

  • Innovative features for security and fairness: The introduction of Sealed Tickets by Eventix and FairShare models by TicketSwap further enhances security and ensures fair revenue sharing between event organisers and fans.

  • Expanding reach and adaptability: While initially focused on music events, TicketSwap's adaptable model now serves various sectors, including sports, theatre, and other attractions, benefiting particularly small to medium-sized event organisers.

Future outlook and evolving solutions

Future outlook and evolving solutions


The secondary ticketing market is poised for further growth and diversification. Companies like TicketSwap are continually innovating to meet new challenges, focusing on enhancing security, transparency, and fairness. The future of the industry seems geared towards more user-centric solutions that balance the interests of all stakeholders.


Conclusion

Conclusion


The secondary ticketing market, characterised by its dynamic nature and complex challenges, requires innovative and adaptive solutions. Platforms like TicketSwap are essential in shaping a market that is secure, transparent, and fair for both buyers and sellers. As consumer needs and market dynamics evolve, these platforms will continue to play a pivotal role in the industry's growth and transformation.
The secondary ticketing market, with its complex challenges, necessitates secure and innovative platforms. Solutions provided by platforms like TicketSwap not only address these issues but also foster a more equitable and trustworthy market. As the industry evolves, such platforms will play a crucial role in shaping a fair and secure ticketing landscape.


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