Just saw this WSJ article. Probably best belongs in this thread.
https://www.wsj.com/economy/consume...hbo04mh23gl&reflink=desktopwebshare_permalink
It’s Getting Too Expensive to Have Fun
Prices for concert tickets and amusement-park entries have ballooned
By
Robbie Whelan and
Anne Steele
Updated Oct. 17, 2023 10:38 pm EDT
The rising cost of fun is becoming a drag.
Ticket prices for live entertainment events, from Taylor Swift concerts to National Football League games and high-season
Disney theme-park visits, rose at a startling rate this year, triggering a phenomenon that analysts have dubbed “funflation.”
Families coughed up large sums saved during the pandemic to attend live events and parks this year. Friends treated themselves to memorable performances.
Mothers took their daughters to stadiums packed with friendship-bracelet-clad concertgoers to see Swift’s Eras Tour.
Now, some Americans are feeling tapped out.
Angela Wentink, 48 years old, recalls going to concerts regularly as an essential—and attainable—part of what she describes as a lower-middle-class upbringing in Massachusetts. It didn’t break the bank to see Bon Jovi.
Trying to give her children some semblance of a similar experience feels impossible. The San Antonio resident was laid off from
Amazon in January, and received her final severance check around the time Swift was headed to Houston.
Do I do something that feels really irresponsible and take this check and make my daughter’s dreams come true?” she remembers thinking. Wentink, who has since started working for an ad agency, said she couldn’t stomach paying thousands for nosebleed seats.
Nearly 60% of Americans say they have had to cut back on spending on live entertainment this year because of rising costs, according to a Wall Street Journal/Credit Karma survey of about 1,000 U.S. consumers conducted at the start of September. Some 37% of respondents said they can’t keep up with the rising price of events they want to attend, while more than 20% of Americans say they are willing to take on debt to continue to be able to afford their favorite entertainment activities.
Roughly 26% of respondents said they don’t spend any money at all on live entertainment, up from 16% before the pandemic, the survey found.
The cost of admissions and fees rose faster than the prices of food, gasoline and other staples in 2022, according to the Bureau of Labor Statistics Consumer Expenditures Survey. Those rising costs have continued this year.
“Anything live, anything experiential is just going through the roof,” said Jessica Reif Ehrlich, a Bank of America analyst who labeled the dynamic as ‘funflation’ in a September research note.
The
latest retail-sales report on Tuesday showed spending at stores, online and at restaurants rose a stronger-than-expected 0.7% in September from a month earlier. The data show that consumers are still spending on goods and experiences, including cars and restaurant meals.
Americans were on track to spend about $95 billion this year on tickets to spectator amusements including movies, live entertainment and sporting events, according to August data from the U.S. Bureau of Economic Analysis. That is up 23% from all of last year, and 12.5% higher than the $84.4 billion spent on the same entertainments in 2019, the last year before the pandemic shut down most spectator events.
Spending at theme parks, campgrounds and related services is on track to hit $79.9 billion this year, up 3.4% from 2022 and 6.2% from 2019.
Live music in particular has undergone supercharged ticket-price increases because of strong demand from some consumers who are still willing to pay up. Music executives attribute this to the marketing power of social media and the globalization of pop music thanks to streaming, with acts such as Puerto Rican artist Bad Bunny and Korean girl group Blackpink
filling stadiums across the globe during recent tours.
“We’re seeing record attendance everywhere,” Ehrlich said. “Everything is sold out.”
The average ticket price for North American tours hit $120.11 this summer, a 7.4% increase over last year and up 27% from 2019, according to Pollstar.
Fans shelled out for big-ticket shows, especially as more acts tour in stadiums. For the first time, the top five touring acts globally—Taylor Swift, Bruce Springsteen, Harry Styles, Elton John and Ed Sheeran—each racked up more than $100 million in sold-ticket revenue during the first half of 2023. Over the past two decades, there were usually no more than one or two artists at that level, according to Pollstar.
Some consumers have cut back on the total number of events they attend, saving their money for one or two big-ticket attractions this year, or have stopped splashing out for entertainment entirely.
For the June quarter this year, the average face-value ticket price for a Swift show was $254,
according to Pollstar, with the listed range before taxes and fees running from $49 to $449. The Eagles notched a $239 average price, with Springsteen just below at $226. Phish tickets averaged $206.
The hottest tickets of the summer ran much higher on the resale market. The average price for Swift tickets sold in the U.S. on ticket marketplace StubHub was $1,095, with the best seats going for thousands of dollars. Beyoncé and Styles ticket sales averaged $380 and $400, respectively. After Lionel Messi joined Major League Soccer, the price of tickets to Inter Miami CF matches shot up to $255 apiece, from $30.
A data analysis from Facteus for the Journal that examined credit-card spending at 16 common entertainment vendors, including Ticketmaster, StubHub, Vivid Seats and a host of theme parks and cinema chains from early 2019 through July, found that the share of consumer spending going to ticketed entertainment has essentially recovered to prepandemic levels.
The percentage of cardholders who buy tickets to live events, however, has fallen more than 10%, suggesting that fewer people are spending on in-person events than in the prepandemic period.
At its theme parks, Disney has figured out ways to maximize
how much cash each visitor spends, including by offering extra features in its smartphone apps that allow guests to skip some lines for their favorite attractions. Those extra costs, in addition to the steadily rising price of food, toys and souvenirs inside the park, have turned off some fans who are already struggling to pay for high-price flights, gasoline and hotel rooms.
Disney said Wednesday that it was raising some prices
at its Disneyland park in California. Walt Disney World in Florida separately increased the price of parking and annual passes.
Before the pandemic, Julie Gibbs, a 52-year-old mother who works in university administration in Indiana, traveled to Walt Disney World in Florida twice most years. Sometimes her extended family would gather at the resort and in its theme parks for special occasions.
But after 2019, prices for tickets and costly add-ons that help visitors navigate the parks began to rise, and she and her family decided to cut out their annual theme-park vacation. They now gather several times a year at a condo in the beach town of Destin, Fla., and spend about half of the typical $6,000 price tag of their previous trips to Disney.
“Quality time with friends and family is really important, but prices have increased on so many things that I feel like we have to be better stewards of what we spend,” Gibbs said. “With Disney, they have their hand out and they just want more and more from me, and I hate that feeling.”
Last year marked the San Diego Zoo Wildlife Alliance’s biggest year for attendance, with more than six million guests, said Paul Baribault, chief executive of the nonprofit.
The starting price for a one-day pass to the zoo has risen from $56 in 2019 to $69 this year—mainly a result of wage inflation and the cost of materials such as animal food, Baribault said. Many fans became members of the alliance to reduce the cost of each visit.
The zoo now has 28,000 higher-level memberships, nearly four times as many as in 2019, and the average membership-holder visits the zoo five times a year, compared with under four times a year in 2021.
“We’re in a competitive marketplace—we have
Disneyland,
SeaWorld,
Legoland and others right in our backyard,” said Baribault, a former Disney executive. The zoo tries to increase prices carefully so that it doesn’t spook visitors.
“If we were priced on the wrong side of the spectrum, you wouldn’t get that feel-good experience,” he said.
Write to Robbie Whelan at
robbie.whelan@wsj.com and Anne Steele at
anne.steele@wsj.com