Taylor Swift mania and the ticket resale market

Taylor Swift concert ticket prices are soaring on the resale market as the iconic artist travels the country for The Eras Tour. For Swifties without tickets, it may be a “cruel summer.”

Assistant Professor Dayton Steele specializes in resale markets and can speak to the factors impacting the skyrocketing prices leading up to Swift’s Minneapolis concert dates on June 23 and 24.

Dayton Steele, Ph.D.

“Concerts for big artists such as Taylor Swift often sell out quickly in the primary market due to scarcity from a limited number of seats. The artists set their ticket prices to create a profit while still ensuring a packed venue and reasonable availability for fans. On the other hand, profit-focused resellers try to sell for the highest possible price.

“The concert ticket resale market follows dynamic pricing practices used in other industries such as airlines. It’s efficient in the sense that the prices respond to the demand and people who really want to can find a ticket, but it can also be inequitable for fans who can’t afford to pay the steep prices. Here’s why when it comes to Taylor Swift’s Eras Tour, the impacts on resale prices are exacerbated:

• COVID-19 concert bottleneck: The pandemic canceled or postponed many events, creating a backlog for concert-goers. Now, the floodgates are open and there’s a lot of pent-up demand for fans to see their favorite artists.
• Star power: Taylor Swift is one of the best-selling artists of all time and continues to make history. She recently became the first artist to claim all of the top 10 slots on the Billboard Hot 100.
• Increased hype: The messy Ticketmaster rollout of her Eras Tour drew attention to the mania of her die-hard fans. This increased the allure of getting a ticket.

“At the end of the day, there is a limited number of seats relative to the massive demand for tickets. Not everyone is going to be able to go. If you’re looking to get tickets, you’ll want to buy sooner rather than later. It’s possible prices will drop right before the concert starts, but unlikely for a big artist like Taylor Swift. However, some fans may start to feel tempted to sell their tickets and pocket thousands of dollars. Holding out as long as you can before selling could get you the biggest bang for your buck.”

Dayton Steele is an assistant professor in the Supply Chain and Operations department. His research centers on retail operations, which includes resale markets, product drops and innovative processes.