How the cost of inflation impacts concert ticket prices
The hot summer season is the perfect time to see your favourite artist, but the rapidly rising cost of entertainment is making it harder to afford a big-ticket show.
Tickets have reportedly gone up by 60% from 2011, well outpacing inflation. One report shows the cost of Taylor Swift tickets has more than doubled since 2018, and Brazil has even introduced legislation dubbed the “Taylor Swift law” to combat the problem.
Meanwhile, the cost of hotel stays has risen for those travelling to see their favourite performers. The average daily rate for a hotel room was up 53.8% in Toronto and 44.3% in Vancouver at the end of last year.
Let’s take a look at what’s causing these increases and what you can do to make your next concert more affordable.
What is driving up the cost of concert tickets?
The rising price of concert tickets comes down to an unrelenting demand following the Covid-19 pandemic. The concert promoter, Live Nation, says 121 million fans attended 43,600 shows in 2022, an increase of 24% since 2019. It expects ticket sales to rise by another 20% in 2023. With more demand than tickets to go around, prices are likely to keep going up.
Live Nation is also the parent company of Ticketmaster, which has been roundly criticized for its anti-competitive practices. With little competition in the market, Ticketmaster is essentially free to hand over tickets to resellers and charge whatever fees it likes for the handful of tickets that actually end up on sale to the general public.
There’s also the increase of cost of putting on a show to think about. A 2017 article by The Guardian breaks down the costs of everything that goes into a concert tour from venues to labour, transportation, and even towels. If you’ve seen the price of towels these days, you know they’re a lot more expensive than they used to be.
These figures all assume you can get tickets to a show at face value, which isn’t always the case. Scalpers are keen to cash in on the demand for concert tickets and ask multiple times the face value – although it’s unclear whether anyone’s actually paying the high asking price.
Entertainment spending fuelling inflation
Finally, there’s the fact that fans are paying higher prices. Where entertainment expenses are usually the first to be cut back in a recession or inflationary period, Canadians are actually spending more where they’re expected to spend less. Data from Statistics Canada adjusted for inflation shows that spending on groceries and alcoholic beverages is trending down, while spending on entertainment, restaurants, and hotels are trending up.
Read: The best credit cards for groceries in Canada – by grocery store
As Canadians continue to prioritize these types of expenses, vendors are incentivized to continue raising prices. If a concert promoter can ask $1,000 per ticket and still sell out, why wouldn’t they?
Where is the money coming from?
All this begs the question: where are people getting the money to pay these big ticket prices? The average Canadian’s disposable income has fallen slightly over the past year, while spending on recreation and culture grew by 10% at the same time. That money has to come from somewhere, and all signs point to credit card debt.
The credit bureau Equifax says Canadians are spending 21.5% more on their credit cards than they did before the pandemic – an increase of roughly $400 per month since the first quarter of 2020. From gas to groceries and everything in between, more people are using credit cards to cover their costs.
That extra spending has, as expected, translated to extra debt. The average Canadian has seen their credit card balance rise by 14.5% over the past year and now carries $20,906 in non-mortgage debt.
Read:How inflation has impacted debt levels and credit card behaviours
How can I save money on concert tickets?
Somewhat ironically, one of the best ways to save on concert tickets is to use the right credit card – with the caveat that you pay off your balance in full, every month.
A travel rewards credit card can let you earn big rewards on your ticket purchases and make it easier to afford the travel arrangements to get you there. With an American Express card, you can also get access to the American Express Front of the Line program which offers presales to most of the biggest concerts, shows, and sporting events.
My favourite Amex card is the Scotiabank Gold American Express Card.
Best for Groceries & dining
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
40,000 bonus points (a $400 value)
- Annual fee
$120
Perks
- Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies
- Earn 5X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions
- Earn 3X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more
- Earn 1X Scene+ point for every $1 spent on every other purchase
Features
Ratehub’s take
The Scotiabank Gold American Express Card earns an honourable mention as one of the best overall travel credit cards for the outstanding benefits it offers to cardholders. This card stands out as a top choice, thanks to its exceptional return on spending and a variety of travel-related perks. This card is particularly useful for those who dine out often, travel, and enjoy entertainment.
Pros
- No foreign exchange fee: Save on foreign currency purchases while travelling abroad or shopping online, as this card doesn’t charge the typical 2.5% foreign transaction fee
- Extensive insurance coverage: Enjoy comprehensive travel insurance, including the $1 million travel medical insurance, which lasts for 25 days and is one of the longer coverage periods available on the market
- High return on spending: Earn five points per $1 spent on groceries, restaurants, food delivery, and entertainment – one of the best in class multipliers in the market. Earn three points per $1 spent on gas and transit expenses
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Annual Fee: This card carries an annual fee of $120
- Fixed point values: Although earn rates are high, travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with other cards
- Airport lounge access is not free: Although you’ll get a discount on a Priority Pass membership for airport lounge access, lounge visits aren’t included with the card
Eligibility requirements
Minimum credit score: 725
Minimum income: $12,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
The Scotiabank Gold American Express card lets you earn up to 6 Scene+ points per dollar spent, which you can redeem for travel, groceries, and other rewards. It also pays 5 Scene+ points per dollar spent on entertainment (including concert tickets). And if you’re traveling to see a show, it carries excellent travel insurance coverage and has no additional fee on foreign currency transactions.
Another great choice is the Scotiabank Passport Visa Infinite Card.
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar earn rate
- Welcome bonus
30,000 bonus points (a $300 value)
- Annual fee
$150 $0 first year waived
Perks
- Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived¹
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligble entertainment puchases and eligible daily trasit options(including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
-
Rates, fees and other information are effective as of Jan.4, 2024. Subject to change
Features
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
While it’s not eligible for the Front of the Line program, it pays up to 3 Scene+ points per dollar spent, has an excellent welcome bonus, and has the same travel features as the Scotiabank Gold American Express Card with the benefit of the near-universally accepted Visa badge.
The bottom line
The cost of entertainment is continuing to rise as post-pandemic demand remains to be tamed. Use the right rewards credit card to save money on your next concert. Or, consider keeping your money. If enough of us do, prices will have to come down.